2012-2013
HH The Emir Sheikh Hamad bin Khalifa Al-Thani
HH The Heir Apparent Sheikh Tamim bin Hamad Al-Thani
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foreword The year 2012 catapulted Qatar on the global stage – be it its acquisitive institutions and companies, bold political statements or its events calendar. The year was marked by a transition phase, both on the political and economic front. On the economic front, Qatar paused for breath before launching into a fresh wave of infrastructure investments that will spearhead the nation into its next phase of growth. Massive infrastructure projects such as Qatar Railways and road projects took off during the year. Corporate Qatar is on a massive expansion mode investing heavily is assets and buying up strategic and distressed assets not only in the region, but all over the world. The aggressive forays of Qtel, QNB and QP are symbolic of the nation’s ambitions. Qatar has created global capacities in Gas-to-Liquids fuels, petrochemicals and LNG. Qatar has announced significant investments in education and health too. A testimony to Qatar’s diversification efforts, the ‘Made in Qatar’ brand is gradually making inroads abroad. QSTP and QFC have been successful in attracting global research and financial firms to Doha. The year concluded with Doha hosting the UN Climate Change Conference COP18, the biggest event hosted by the country so far. This event saw Qatar as the harbinger of many climate change decisions in the years to come. 2013 boasts of an impressive events calendar with the first World GTL Conference and the 8th World Chambers Congress scheduled for the first half of 2013. We map the trends, events and news of Qatar’s development in this issue of Progress.
Content 94
Overview 12 Pausing for breath
Investments in the oil and gas sector have been completed and the country gets ready for the next phase of growth.
Economy 26 Feeding the economy
Higher contribution from the energy sector dwarfed the rising contribution from the non-hydrocarbon sector. America’s Shale gas reserves and massive expansion in global LNG production are the key threats for Qatar’s energy sector.
34 The buying power
QIA chases strategic growth oriented assets globally
36 Strong outlook
Qatar’s banking sector gets ready for the credit boom driven by massive infrastructure investments in the country.
40 Future looks bright
Introduction of compulsory medical insurance and the ongoing construction activity is expected to open up opportunities for the insurance sector.
42 Developing Capital Markets
QE introduces a junior market for SMEs making the stock market an option to raise finance.
26
12
Content 31
52
Infrastructure 52 Going Solar
Kahraama gives impetus to Qatar’s solar initiatives by agreeing to distribute solar power to homes.
56 The national network
QR100 billion will be invested in the next seven years to beef up infrastructure in Qatar including drainage systems and road projects.
ICT 72 Connecting the dots
Qatar’s ICT sector seeks to act as a catalyst for the country’s economic development beyond its dependence on hydrocarbon revenues. The country has made significant progress to grow this critical sector in 2012 with countless initiatives becoming a reality.
76 ICT Boom
As evidence of Qatar’s emergence as a regional knowledge player, ictQatar’s 2011 Annual Report revealed that the country’s booming technology sector grew to QR15.5 billion in 2011, posting an average annual growth of 17% in the last five years.
Private Sector and Diversification 106 Journey towards innovation
QSTP won the bid to host the IASP 2014 World Conference and has successfully commercialised ‘Made in Qatar’ technologies such as RASAD and Loghati.
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SLUG NAME
overview 13
HH The Emir Sheikh Hamad bin Khalifa Al-Thani at COP 18
Economy:
T
he year 2012 ended with Doha hosting its most important international event till date, the UN Climate Change Conference (COP18/CMP8) 2012. Representatives from 194 countries gathered in Doha to discuss a fair and legally-binding global climate deal. The conference ended with what was termed the ‘Doha Climate Gateway’. Countries agreed on a new global agreement on climate change that would require cuts in greenhouse gas emissions from both developed and developing countries, to be signed in 2015 and come into force from 2020. It also concluded a range of important work under the Bali Action Plan. Finally, it launched a process known as the Durban Platform to design a new, universal climate agreement from 2020 onwards. The expansion in upstream oil and gas sector stands completed and all major facilities are now operating at full capacity. Downstream expansion of production at the Pearl GTL (gas-to-liquids) facility and in petrochemicals is underway. A number of expansion projects in the downstream petrochemical sector came online in 2012.
In the manufacturing sector, downstream petrochemical production is expected to be the future growth driver. Reflecting the broad economic trends, performance at the Qatar Exchange too remained subdued. However, expecting growth in future, Qatari companies continue to invest in assets within the country and expand their businesses abroad. High gas prices, massive government investment, sizeable fiscal surplus, the impending construction boom, expanding manufacturing base and rising contribution from the nonhydrocarbon continue to be the key positives. On the negative side, Qatar continues to face shortage of local talent required to match the growth. The country continues to take various steps to mitigate this challenge. The tight deadline for infrastructure projects is also a key concern. Qatar currently has the highest credit ratings in the GCC, together with Kuwait and compares favourably with some of the most developed economies in the world. Massive investments in education and health in the budget 2012-13 should steer the country towards fulfilling the National Vision 2030.
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Qatar has been expanding at a break-neck speed in the last five years clocking double digit growth rates, largely triggered by investments in the hydrocarbon sector. In 2012, the country paused for breath before moving towards the next phase of growth, which will be driven by the non-hydrocarbon sector, specifically massive infrastructure investments in the run up to the World Cup 2022. Some traction was witnessed as major tenders in the infrastructure space were awarded, notably the rail and road projects.
overview
pausing for breath
Qatar: Outlook at a glance 2012
2013
Real GDP Growth (%)
6.2
4.5
Nominal GDP Growth (%)
11.2
4.7
Consumer Price inflation (%)
2
2.5
Fiscal Surplus (% of nominal GDP )
7.8
4.8
Current Account Surplus (% of nominal GDP )
22
20.6
Source: Qatar Economic Outlook 2012-13 report released by General Secretariat for Development Planning
Share in real GDP (%) Date
Hydrocarbons
Industries (manufacturing, construction, utilities)
Services
2012
46.8%
20.3%
32.2%
2013
44.2%
21.3%
33.7%
overview
Source: GSDP estimates.
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GDP Growth subdued GDP growth moderated at around 4% in the first two quarters of 2012 (the last updated data available). The General Secretariat for Development Planning (GSDP) estimates GDP growth to remain subdued at 4.5% for 2013. Upstream and downstream hydrocarbon sector is expected to contribute 66% of GDP. The non-hydrocarbons growth is expected at 6.6% for 2013. Given the small population, GDP per capita was around QR364 thousand ($100 thousand) in 2011, the highest in the GCC and one of the highest in the world. According to Qatar National Bank (QNB) report titled Economic Insight October 2012, per capita GDP is expected to touch QR390 thousand ($107 thousand) in 2012 and QR400 thousand ($111 thousand) in 2013. Inflation curtailed by depressed rent The rent, fuel and energy category has the strongest weighting in Qatar’s Consumer Price Index (CPI) basket, accounting for 32.2% of the index. Rent alone accounts for 31.3% of the index. Depressed rent in the last few quarters due to property oversupply has kept overall inflation under check. In the first nine months of 2012, year-on-year CPI inflation averaged 1.6%, including rent deflation of 4.9%. Excluding rents, inflation averaged 3.4%. Inflation picked up in categories such as education, entertainment, furniture, textiles and home appliances suggesting that demand for expensive goods has increased that can be attributed to the rising disposable income. QNB estimates inflation to rise substantially to 3.7% in 2013 as rents may go up in future.
The Producer Price Index (PPI) is predominantly driven by changes in oil prices. QNB estimates that PPI inflation will be at 7.9% in 2012 and 1.2% in 2013 based on international oil price forecast of QR400 ($110) in 2012-13. The relatively high rate of inflation in 2012 is mainly due to strong LNG prices, which have risen more than oil prices owing to tight international markets. Massive budget allocation for education and health The government budget for FY 2012-13 foresees a 28% increase in outlays compared with budget spending estimates for FY 2011-12. Budgeted spending on major capital projects is to account for about 25% of total expenditure, rising by over 30% against actual outlays in FY 2011-12. Sizeable increases in health and education expenditure are planned. A whopping QR14 billion was allocated to healthcare in the 2012-13 budgets. This is close to 8% of the total budget for the year and a 63% increase from the previous budget. The planning assumptions work on QR236 ($65 per barrel) of oil, up from QR200 ($55). The budget surplus is expected to increase from QR23 billion in 2011 to QR28 billion in 2012 (an increase of 21.7%). An amount of QR22 billion has been set aside in the budget for the education sector, up 14% compared to the previous budget. In the FY 2012-13 budget, QR62 billion is allocated for public projects, accounting for 25% of the total budget. Qatar will also invest an estimated QR36 billion in infrastructure projects in FY 2012-13 government spending will continue to be the primary growth driver in the next decade.
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The story of the past
dent State of Qatar on September 3, 1971. The Emir, HH Sheik Hamad bin Khalifa Al-Thani announced his intention for Qatar to move towards democracy and has permitted a freer and more open press and municipal elections as a precursor to expected parliamentary elections. Qatari citizens approved a new constitution by public referendum in April 2003, which came into force in June 2005. Historical Inhabitants Evidence of early inhabitation in Qatar can be traced as far back as the 4th century BC. Signs of inhabitation can be found in many artifacts such as inscriptions, rock carvings, flint spearheads and pottery which were all uncovered by Danish (1965), British (1973) and French (1976) expeditions. Researchers knew of Al Wasil hills since 1957 as an important site of Stone Age archeology. About 200 archeological sites of the prehistoric age were discovered during the eight years of the Danish expedition. Several sites of various periods in the Stone Age were discovered to the east of Umm Bab. An important site for the manufacture of flint tools, which probably goes back to the Mesolithic Stone Age, was discovered at Umm Tag (south-west of Dukhan) and new sites were discovered to the south-east of Mesaieed. The archeological surveys revealed that the Ubaid civilization, which flourished in southern Iraq and the northern parts of the Arabian Gulf, had also reached Qatar. In the 5th century BC, Greek historian Herodotus referred to the seafaring Canaanites as the original inhabitants of Qatar. Further, geographer Ptolemy showed in his map of the Arab world ‘gatara’ – believed to refer to the Qatar town of Zubarah, which is well known as one of the most important trading ports in the Gulf region then
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he tribute ended when the Ottomans occupied the country. When the Ottomans left at the beginning of World War I, the British recognized Sheikh Abdullah Jassim Al-Thani as ruler. The Al-Thani family had lived in Qatar for 200 years. The 1916, treaty between the United Kingdom and Sheikh Abdullah was similar to those entered into by the British with other Gulf principalities. Under it, the ruler agreed not to dispose of any of his territory except to the United Kingdom and not to enter into relationships with any other foreign government without British consent. In return, the British promised to protect Qatar from all aggression by sea and to lend their good offices in case of a land attack. A 1934 treaty granted more extensive British protection. In 1935, a 75-year old oil concession was granted to the Qatar Petroleum Company, a subsidiary of Iraq Petroleum Company, which was owned by Anglo-Dutch, French, and US interests. High quality oil was discovered in 1940 at Dukhan, on the western side of the Qatari peninsula. However, the start of World War II delayed exploitation of Qatar’s oil reserves. Oil exports did not begin until 1949. During the 1950s and 1960s, gradually increasing oil revenues brought prosperity, rapid immigration, substantial social progress, Qatar’s modern history began. When the United Kingdom announced the end of treaty relationships with the Gulf sheikdoms in 1968 (reaffirmed in March 1971), Qatar joined the other eight states then under British protection (the seven sheikdoms being present United Arab Emirates and Bahrain) to form a union of Arab emirates. By mid-1971, when the British Treaty would expire, the nine still had not agreed on terms of union. Accordingly, Qatar declared independence as a separate entity and became the fully indepen-
overview
The Al Khalifa family of Bahrain dominated Qatar until 1868 when, at the request of Qatari nobles, the British negotiated the termination of the Bahraini claim, except for the payment of tribute.
Estimated current project spending Budgets (US4 billion)
% of total spending
Construction
117
48
Transport
72
29
Gas
16
7
Chemical
15
6
Power
10
4
water
9
4
Industrial
2
1
Oil
2
1
Total
243
100
Source: QNB Economic Insight Report October 2012
overview
continuation of page 14
PROGRESS 2012-2013
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Hydrocarbon Sector Qatar had raw gas reserves totaling 885 trillion cubic feet (cf) at the end of 2011, the third largest natural gas reserve in the world after Russia and Iran. At current production rates, gas reserves are expected to last for around 160 years. Total natural gas production in Qatar has risen at 27% per year from 42 million tonnes per year (tpa) in 2007 to an estimated 109 million tpa in 2011. In 2011, around 68% of the gas was allocated to LNG production. QNB estimates that this proportion will fall slightly going forward as Qatar increases production in 2012 to feed new GTL facilities and to meet domestic demand from 2014. LNG exports commenced in 1996 and now Qatar is the world’s largest exporter of LNG. Recent high oil prices have boosted the revenue received through many of the long term contracts. The global LNG market received a major boost in 2011 when Japan shut down most of its nuclear power plants in the aftermath of the tsunami which destroyed the Fukushima plant. Until the Barzan project commences in 2014, no major production increases are expected. Gas production is unlikely to increase significantly in 2012-13 as there is a moratorium on new gas export projects in place until at least 2014. According to QNB Economic Outlook 2012, “The completion of new GTL facilities at the end of 2011 and during 2012 will result in higher production in 2012-13. Higher gas production to feed these facilities will lead to an increased output of condensates and NGLs, which are expected to rise from an average of 989 thousand barrels per day (bpd) in 2011 to 1.03 million bpd in 2012 and 1.07 million barrels per day in 2013”. Non-hydrocarbon sector In the non-hydrocarbon economy, construction activity is seen picking up in 2012. According to Commercial Bank, construction sector is expected to grow at 10% during 2013. Qatar has also invested in industries that leverage its comparative advantages in hydrocarbon feedstock and energy inputs. These include
petrochemicals, fertilizer manufacturing and metal production. Qatar is now the largest urea and ammonia manufacturer in the world. It is rapidly expanding its downstream petrochemicals businesses by adding value added products to its portfolio. Qatari services sector companies such as QNB, Qatar Airways and Qtel are competing with global players. These companies are also rapidly expanding their businesses abroad. In the financial sphere, the Qatar Financial Centre (QFC) has been successful in attracting globally renowned companies. A number of world renowned educations institutes have set shop in Qatar. Qatar also aims to be center for research pertaining to hydrocarbons, health and the environment. The QSTP has been instrumental in projecting Qatar’s research efforts on the global stage. According to GSDP estimates, industry is expected to contribute 33.7% of the real GDP and services, 32.2% in 2013. Business environment The Global Competitiveness Report 2012-2013, produced by the World Economic Forum (WEF), ranked Qatar 11th out of 144 countries. This was a significant improvement from 14th position out of 142 countries in 2011-12 and keeps Qatar at the top of the GCC. The improvement in Qatar’s rankings was mainly a result of a higher score in the basic requirements category, including an improvement in ranking from 5th to 2nd for macroeconomic environment and from 14th to 4th for institutions. Qatar moved up two places in the overall World Bank 2012 Ease of Doing Business rankings to 36th out of 183 countries, overtaking Bahrain to rank third in the GCC after Saudi Arabia (12th) and the UAE (33rd). The World Bank index focuses mainly on regulatory issues, while the WEF carries out a more comprehensive assessment of the entire environment, taking account of factors such as education, infrastructure, the economy and efficiency. The World Bank cited improvements in two areas – ease of starting business and access to credit – as the reasons behind the better rating
Qatar’s progress is guided by a well-thought out and clearly defined medium-term strategy and a long-term vision. The vision identifies clearly defined goals and areas that need emphasis in the medium to long-term.
T
he goals and the strategies to achieve them are defined in the two documents – Qatar National Vision 2030 (QNV 2030) and Qatar National Development Strategy 2011-2016. The former deals with the long term goals while the later lays down the medium-term goals and the means to achieve it. QNV 2030 focuses on the outcomes and the NDS defines the plans and programmes to get there.
Qatar National Vision 2030 Identifies Goals The QNV 2030 rests on four pillars: Economic Development, Social Development, Human Development and Environmental Development. Economic Development Qatar is a predominantly hydrocarbon-based economy and the leadership recognised the need to diversify its revenue base to establish a more sustainable economy. It identified the need to
diversify into a knowledge-based economy so as to lower the high dependence on oil and gas. The key economic objectives identified are management of the Qatari economy, help increase competition, attract more investments, and stimulate growth. This is to be achieved through expansion of industries and services with competitive advantages derived from hydrocarbon industries, development of economic activities and creation of a knowledge-based economy characterised by innovation, entrepreneurship, excellence in education, a world-class infrastructural backbone and the efficient delivery of public services. Social development Social development under the QNV 2030 encompasses a system dedicated to social welfare and protection for all citizens, to bolster women’s role in the society and empower them to be active community members. Social advancement also means equal education, employment and career opportunities for all citizens, regardless of their background or gender and a tolerant
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National Vision 2030 and NDS
overview
Guided by strategy, long-term vision:
overview PROGRESS 2012-2013
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“It’s impossible to have a transition to democracy in the Arabic countries without development policies, gap bridging between rich and poor, and the creation of appropriate economic conditions for the expansion of the middle-class.” His Highness, the Emir, Sheikh Hamad Bin Khalifa Al-Thani.
and fair society that embraces Islam’s values of peace, welfare, justice and community. Under the QNV 2030, Qatar will serve as a regional and global example with an increased role in the Middle East and the world.
the society, strengthening environmental laws, building effective environmental institutions, adopting sustainable urban development policies and encouraging regional cooperation for mitigating environmental risks.
Human Development Human development, according to the QNV 2030, entails a holistic and modern healthcare infrastructure that caters to all and an educational system at par with the highest international standards. It aims to prepare Qatar’s students to take on the world’s challenges and become tomorrow’s innovators, entrepreneurs, artists and professionals. A world-class education system and equal opportunities will propel Qataris to increase their role in all sectors of their country’s economy.
NDS 2011-2016:
Environmental goals Growth without responsibility can prove hazardous in the long run. The oil and gas sector is one of the largest polluting sectors and hence the role of oil producing countries in environmental management cannot be ignored. The QNV 2030 recognizes the need to balance between development needs and protecting the environment. This is to be done by creating awareness in
Steps to achieve the goals The National Development Strategy (NDS) is aligned to the QNV 2030. It identifies projects and programs from 14 sectors and clearly specifies outcomes and targets for the programmes. The detailed strategies for these sectors arrived after extensive consultation and analyses. It is benchmarked against best practices followed in other countries. The sector strategies provide indicative resource requirements for each project or program, identifies key stake holders, risks and risk mitigation measures; and a basic monitoring and evaluation framework supported by select indicators that can be monitored. The NDS also works in line with the four pillars identified in the QNV 2030. Sustaining economic prosperity The key goal is to meet the needs of the current generation without compromising those of future generations. To embed
Promoting Human development To achieve human development, Qatar will invest in health and education and actively pursue Qatarisation. Through the NDS 2011-2016, under the guidance of the Supreme Council of Health, Qatar will enhance the wellness of its people and establish a vibrant, healthy and productive society. The National Health Strategy seeks to improve health outcomes by establishing a world-class healthcare system with effective and affordable services for the entire population. The education and training initiatives are designed to achieve outcomes in 20 sectors. Six core outcomes require integration and planning across all educational sub-sectors. The others are specific to K-12 general education, higher education, technical education and vocational training, and scientific research. To help realise national labour market goals, the government proposes major reforms over 2011-2016 to promote human capital development for sustainable economic growth and to enable the transition to a knowledge economy. The government also aims to increase labour market efficiency by matching labour supply and demand in the public and private sectors. Social Development The social development strategy aims to enhance individual well-being without compromising Qatar’s cultural identity. This strategy will integrate the following elements:
Environment Development This strategy envisions a broad shift in laws, regulation, management systems, technologies and attitude. It advocates specific actions to conserve water, improve air quality, manage waste and protect biodiversity, the strategy adheres to the foundational concept of intergenerational justice. Projects under the plan include National Water Act, urban water table management plan, reduce gas flaring and venting, establish a solid waste management plan and create environmental awareness. Within these broad focus areas there are 16 projects that are designed to be flexible with a high degree of stakeholder participation and ownership. A mid-term assessment of the NDS 2011-2016 at a project, sector and national level in the second half of 2013 will inform future refinements of strategic directions. The NDS 2011-16 estimates that around $225 billion of investment will be executed during 2011-16. This is roughly in line with the $243 billion of projects that are currently underway and planned in Qatar. The NDS 2011-16 estimates that the government will provide 42% of total investment, laying the foundations for the private sector to make up the remainder
overview
Establishing strong cohesive families that care for their members and maintain moral and religious values and humanitarian ideals. Establishing an effective social protection system for all Qataris that ensures their civil rights, values their contribution in society and ensures an adequate income to maintain a healthy and dignified life. Establishing a secure and stable society operating on the principles of justice, equality and the rule of law. Increasing active lifestyle practices among the population to improve health outcomes and to use sports participation to forge friendships and improve relations between countries worldwide. Establishing Qatar as a hub of Arab culture through a distinctive national identity, strong community cohesion and a vibrant and creative cultural sector.
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sustainability in Qatar’s economy, progress is needed in three parallel, mutually reinforcing directions. First, the country will enlarge the value of the productive base. It is necessary to sustain prosperity in an economy with a growing population and to expand the potential for future generations. Second, the government will guard against economic instability and promote increased efficiency. Third, the government will work in partnership with the private sector to diversify the economy and foster a culture of discovery and innovation. Diversification will be achieved by providing an impetus to the SME sector and research activity in the country. It also aims to improve market efficiency by putting scarce resources to their best use.
overview PROGRESS 2012-2013
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Cross-border infrastructure will reduce trade costs
The National Development Strategy (NDS) 2011-2016 marked a watershed for Qatar, as did the National Vision 2030 that preceded it. The Vision, for the first time, explained what kind of nation Qatar aspires to become. The Strategy – which contains over 180 targets – is an action plan that will help Qatar move forward on that journey.
T
he Qatar National Vision 2030 is a roadmap for the future and a statement of the country’s long-term strategic goals, the challenges it faces and the opportunities the future will present. To capture this vision is the National Development Strategy (NDS), while the General Secretariat for Development Planning (GSDP) will coordinate with stakeholders from civil society and the private and public sectors to set the wheels in motion. It’s a huge responsibility, but taking it head-on is Dr Saleh Mohamed Al-Nabit, Secretary-General of GSDP, who addresses some early questions about its progress.
fiscal and balance of payments surpluses provide a robust layer of protection.
To what extent is the national economy capable of meeting and overcoming the challenges facing the global economy? Qatar’s economy has displayed great resilience in recent times. According to an IMD global survey, Qatar’s economy ranks 6th out of 59 countries for resilience in 2011. Although Qatar is not completely immune to conditions in the global economy, strong
What are the outlooks mentioned in the report Qatar Economic Outlook released by the Secretariat last year, and how much of those expectations match the reality? GSDP forecast growth of 15% for real GDP in 2011. It was actually 14%. We were just a shade optimistic but very close to the mark, and much closer than the majority of observ-
How will you maintain a growth rate of not less than 9% post-2014 when the oil and gas investment projects have been completed? The high growth rates of the past decade, a result of significant expansion of the gas sector, will make way for more moderate growth in the future. GSDP believes that an aggregate growth of 4-5% over the medium term is achievable and sustainable – most of which will be in the non-oil and gas sector.
Dr Saleh Mohamed Al-Nabit Secretary-General, GSDP
overview
“Over the next five years, growth in the oil and gas sector will plateau and the nonoil and gas ones will pick up the reins of growth. ”
ers, some of whom were forecasting growth closer to 20%. At GSDP, we have taken a lot of care to construct an accurate statistical picture of the anatomy of the economy that helps us think about our prospects. We believe our Economic Outlook sets new standards in economic monitoring and reporting for the country. Tell us about the future of the Qatari economy during the next five years. What are the sectors that will see growth? Over the next five years, growth in the oil and gas sector will plateau and the non-oil and gas ones will pick up the reins of growth. Only when the Barzan Project comes on stream in 2014 and 2015 will there be a significant boost to downstream petrochemical activity, with the availability of additional feed. In the next few years, large infrastructure investments will help stimulate activity, and there will be growth in some other sectors, such as financial services. Overall we expect trend growth of real GDP to be approximately 4-5%. How about the foreign investments in Qatar and their role in the economic growth? What are the facilities provided for this area? Joint venture arrangements between the state and international oil companies have been essential for Qatar’s success
in oil and gas. Outside of oil and gas (including downstream petrochemical and energy-intensive sectors) there has been more limited foreign direct investment in the country. However, Qatar is working hard to tap foreign investment interests through, for example, the partnering of SMEs with knowledgeable partners overseas who can provide value-adds. In the past weeks, we have had investment and trade delegations who were exploring such opportunities. What is the significance of the Qatari investments abroad? As a small economy, Qatar cannot absorb the inflows of foreign currency from sales of its hydrocarbon assets. To help stabilise the domestic economy and diversify future income sources, Qatar invests in overseas projects and foreign currency assets. These investments will provide income resources. What are the expectations of inflation in the light of the 60% hike in salaries of Qatari employees in the public sector? The increase in salaries for citizens is actually quite small in macroeconomic terms and indeed is not so large when measured against the totality of benefits that Qatari public service workers receive. Much of the additional income is likely to have been saved and invested or perhaps spent overseas. It is extremely difficult to detect any impact of the wage rise on recent monthly
PROGRESS 2012-2013
25
consumer price inflation figures. Inflation, in annual average terms, remains low and very close to 2%.
overview
You have described the Qatari economy as an ‘open’ one and predicted an increase in some commodity prices. Could you tell us a little about that? Qatar is of course a highly open economy. Our earnings are still driven by exports of oil and gas (including now GTL as well as LNG) and we need to import much of our needs. The Qatar Economic Outlook in 2011 foreshadowed declining prices for many global commodities, which have since materialised. Slower growth in China and India has had a large marginal impact on demand. I expect that the outlook for commodity prices will remain subdued until we see indications of a broader pick-up in global growth. Oil prices are extremely difficult to predict, and the State, while formulating its budget, takes a conservative, but sensible view of the outlook.
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Tell us about the NDS 2011-2016, which was launched almost a year ago. How much of it has been implemented by the beginning of 2012? Implementation of the strategy rests with the responsible agencies who also participated in its formulation. Just 12 months later, we see good signs of progress in areas such as health and the environment. The Ministry of Economy and Finance is also moving forward with its reform programme. In other areas, the focus of attention is creating the capabilities to execute the strategy. What about the awareness of the importance of this strategy within the institutions and ministries? There is good awareness of the strategy and the GSDP is frequently asked for advice on implementation matters. The recent formation of the Supreme Committee for Development Planning, chaired by HH the Heir Apparent and with the Deputy Prime Minister as a member, gives added importance and impetus to execution. What about the challenges that the strategy might face and how to overcome those challenges? There are of course challenges, as the NDS is a first for Qatar. I would say the two main challenges are: 1) building institutional capabilities and ensuring good coordination at the interface of agencies and sectors, and 2) embedding principles of sustainability in the way the nation thinks about development and makes decisions on priorities. Tell us about the strategy follow-up and monitoring processes. GSDP is mandated to follow up and will be producing a monitoring report for the top leadership before the end of this year. GSDP will monitor at a national level and be focusing on outcomes – the beneficial changes that interventions have led to. It is expected that agencies will strengthen their own monitoring capabilities at a programme and project level.
What about the initiatives of the private sector and its cooperation with GSDP? The strategy has many initiatives to support private sector development. In the future, the private sector must play a more vigorous role in the economy. The creation of Enterprise Qatar, an initiative that GSDP spearheaded together with the Ministry of Business and Trade, and the initiatives of the Qatar Development Bank, show that a lot has been achieved in a short space of time. But building a private enterprise culture in Qatar, rooted in high performance and competition, will take time and cannot be expected to happen overnight. What are the plans to be implemented to increase the private sector is integration into the strategy structure? The private sector works closely with Enterprise Qatar and the Qatar Development Bank. It was represented in the working groups that formulated the strategy. GSDP also provides support to the activities of the Qatari Businessman Association and other groups where it has something to offer. The private sector is an extremely important stakeholder and GSDP will be looking for opportunities to promote better public-private collaboration. Is domestic investment one of the main concerns of the National Development Strategy? It is very important that large capital projects meet the long-term development needs of the nation. Some assets should have a usable life of 100 years. So yes, investment is a concern. Upstream, the planning and selection of investment needs would benefit from more rigorous scrutiny. During implementation, enhanced coordination is needed (and the Central Planning Office of the Ministry of Municipalities is a good initiative here). During operations, opportunities for public-private partnerships should be explored. What about the second National Development Strategy post2016? Having just completed the first strategy plan, it may be premature to talk about the second strategy. However, a substantive review of the first strategy will be undertaken mid-way through which will look at the implementation experience and any environmental changes, and will consider what mid-course corrections might be needed. What is the role of GCC integration in the success of domestic plans and strategies? Qatar would benefit from closer integration with the GCC and has proactively supported existing initiatives, including on Customs Union. One area identified in the strategy is the need for better cross-border infrastructure that would reduce trade costs (in time and monetary terms) and help expand the market that Qatar has access to. Other important areas for cooperation include the sharing of natural resources and on environmental management
PROGRESS 2012-2013
SLUG NAME
economy 27
Feeding the economy The oil and gas industry took a breather in 2012 as Qatar’s massive upstream investments stood completed with all major facilities operating at full capacity.
economy
oil & gas:
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he ongoing projects include the Pearl GTL and the Barzan projects in the upstream sector that are expected to be operational by 2013 and 2015, respectively. Qatar’s hydrocarbon economy in future will be fuelled by LNG exports, GTL products and downstream petrochemicals. During the year, Qatar has announced the second phase of hydrocarbon growth through downstream diversification. Massive investments to the tune of QR91 billion ($25 billion) will be invested in the downstream sector over the next decade. Downstream Petrochemical Expansion Qatar’s global competitiveness in the downstream petrochemical and fertilizer industry is aiding its diversification efforts. A downstream presence not only improves profitability by adding value to raw output, but also partially insulates it from the vagaries in the global energy market. By significantly expanding its downstream capacity, Qatar is already the largest single-site producer of urea and ammonia in the world. With the launch of QAFCO5 and QAFCO6 in 2011 and 2012, the company’s annual production capacity of urea at 5.6 million MT is the largest in the world. Further product expansions are also on the anvil.
QAPCO’s low-density polyethylene plant-3 (LDPE 3) came online in 2012 making it one of the biggest single site LDPE producers worldwide. QAPCO’s total annual production capacity of LDPE will be 700 thousand netric tonnes per annum (kmta) and the combined annual production capacity of Polyolefins (LDPE+LLDPE) will touch 1.15 million metric tonnes per annum (mta). During the year, Qatar Petroleum (QP) announced two major petrochemical projects with Royal Dutch Shell and QAPCO. QAPCO and QP will construct a massive petrochemical venture worth QR20 billion scheduled to be completed in 2018. The joint venture between includes a world-scale steam cracker and will feature industry-leading, proprietary technology. The petrochemical complex will produce 1.4 million mta of ethylene, 850 kmta of high-density polyethylene (HDPE), 430 kmta of linear low-density polyethylene, 760 kmta of polypropylene, 83 kmta of butadiene, and 125 kmta of pyrolysis gasoline. These products will be marketed primarily in high-growth markets in Asia, Africa and Latin America. The plant with Shell is estimated to cost QR24 billion ($6.5 billion). The scope under consideration includes a world-scale steam cracker, with feedstock coming from natural gas projects in Qatar; a mono-ethylene glycol plant of up to 1.5 million
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economy
is currently the largest exporter of LNG in the world and caters to one-third of the global LNG demand. Shell expects global natural gas demand to increase by 60% from 2010 to 2030, reaching 25% of the global primary energy mix and within that, strong growth in LNG. According to Shell, LNG demand has doubled to 200 million tonnes per annum (mtpa) in the first decade of this century and expects LNG demand to double to 400 mtpa by 2020, and potentially reach 500 mtpa by 2025. Realising the LNG potential, Qatar completed massive LNG investments by 2011. The last of the 14 LNG trains was completed, taking the total LNG production in the country to 77 million metric tonnes. Qatar has successfully built an integrated LNG supply chain including the shipment logistics. It owns 54 LNG tankers that will transport LNG all over the world. The key demand for LNG is from the energy hungry South East Asian countries. Qatar has signed long-term LNG export contracts with South Korea and Japan-two key customers ensuring LNG off take in the medium-term. Qatar meets one-fourth of Korea’s energy demand. Qatar’s dominant position is being threatened by massive upcoming facilities across the globe, especially in Australia. Australia’s expansion of its LNG export facilities will make it the second largest LNG producer at 60 mtpa by 2020, next only to Qatar. Qatar is planning to buy into Australian investments to ensure a stake in future global LNG exports. Qatar Petroleum International has been acquiring strategic stakes in oil assets abroad to diversify its portfolio and to secure its position in the energy market. Progress made on US shale gas extraction is yet another threat for Qatar.
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His Excellency Dr Mohammed bin Saleh Al-Sada, Minister of Energy and Industry and Chairman and Managing Director of Qatar Petroleum (QP),
tonnes per annum using Shell’s proprietary OMEGA (Only MEG Advantaged) technology; 300 kilo tonnes per annum of linear alpha olefins using Shell’s proprietary SHOP (Shell Higher Olefin Process); and another olefin derivative. In addition, an aromatics plant is also being planned. The upcoming QP-Shell Petrochemicals project, has been named Al-Karaana Petrochemicals Project. The Al-Karaana Petrochemicals Project in Ras Laffan Industrial City (RLIC) entered the front-end engineering and design (FEED) phase in early 2012 and pre-qualification bids were invited for the delivery of an integrated FEED. The FEED contract is expected to be awarded in early 2013. On completion, Qatar would have secured a significant edge in the global petrochemical market. With abundant availability of gas, a downstream diversification was a natural choice for the country. Adoption of new sophisticated technology has improved cost efficiency and overall given Qatar a global competitive edge. LNG challenges Qatar has the third largest reserves of natural gas in the world; it
Impact of Shale gas According to a report released by the world’s leading energy agency, the International Energy Agency (IEA), the US could become energy self-sufficient by 2035 as it increases production from unconventional shale rock. IEA also predicted that if this happens, more than 90% of oil and gas from the Middle East could be sold to Asia, and chiefly to China. The Organization of the Petroleum Exporting Countries (OPEC) noted that total shale gas production in the US jumped from 15 billion cubic feet a day (bcf/d) in 2010 to 25 bcf/d in 2012. Gas prices in the US are much cheaper than elsewhere in the world, prompting the US to export shale gas. Encouraged by the US success in shale gas extraction, other net importing countries such as Europe, China and Australia too are considering shale gas extraction. If successful, this could have a significant impact on the world energy markets. Should Qatar, being the largest exported of Natural gas, worry? Qatar’s Minister of Energy and Industry and Chairman & Managing Director of Qatar Petroleum His Excellency Dr Mohamed bin Saleh Al-Sada has brushed aside worries regarding shale gas affecting Qatar’s LNG exports. In an interview to Oil & Gas magazine he said, “Due to the built-in flexibility of our involvement in the total value chain of the LNG business, Qatar could address and deal with the change in LNG demand in different regions, and
ORYX GTL: The World’s first gtl project
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GTL gives access to diversified markets Qatar has made a strategic shift towards Gas-to-Liquids, the environment friendly fuel, by investing in world class GTL facilities. For GTL technology to be commercially viable, it has to be built on a large scale with huge investments. Not short of capital, Qatar built vast GTL plants with investments exceeding QR72 billion ($20 billion), making it the GTL capital of the world. The cleaner burning, high value fuel has proven its utility as a transportation fuel, especially as aviation fuel. GTL is an attractive op-
tion to monetise gas and expand into the transportation fuel market especially jet fuel. Various combinations are being tried out by research programmes in Qatar to develop high quality jet fuel. A Qatar Airways Airbus A340 made the first ever commercial passenger flight using a 50-50 blend of GTL and conventional jet fuel in 2010. GTL can also be converted into high quality lubricants and thus get an access to the market for oil products. GTL improves profitability as oil products have better margins and gives an exposure to the entire value chain and thus entry into oil markets. Oryx GTL was the world’s first commercial GTL complex that started production in 2007. The complex at Ras Laffan has a total GTL output capacity of around 34,000 barrels per day. The QR3.6 billion ($1 billion) joint venture between QP and South Africa’s Sasol, has exported more than 20 million barrels of premium GTL products as of end-2011. The majority of the GTL diesel is sold to Europe while GTL naphtha is supplied to East Asian countries including India, Malaysia and Japan. The Pearl GTL plant, set up in partnership with Qatar Shell, is the world’s largest integrated GTL facility. On completion, Qatar will be the global GTL capital. Pearl GTL will produce 260,000 barrels per day of products, including 140,000 barrels per day of GTL. Pearl GTL made its first shipment in 2011 after completion of Phase 1. Phase 2 is expected to be completed by 2013, achieving full output in early 2014. Barzan Gas Project The QR38 billion Barzan project, a JV between Qatar Petroleum and ExxonMobil, reached financial close in December 2011. 70%
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we are prepared to respond to these changes as and when they occurred.” OPEC’s World Oil Outlook Report 2012 too expressed doubts about the possibility of shale gas transforming the energy map. The report noted that: “There are considerable uncertainties about the size of the resources, the economics of development and the potential contribution to future supply. Currently, shale gas production is coming primarily from North America. Replicating the success of US shale gas development internationally requires addressing many key challenges including water shortages, a lack of infrastructure, higher population densities, a shortage of skilled labour.” Qatar also has investments in US LNG terminals. QP has a 70% stake in Golden Pass terminal in the US. The Golden Pass terminal would account for more than 15% of total planned US LNG export capacity, when all projects are completed. QP and Exxon Mobil received a first permit to export natural gas from their Golden Pass import terminal in Texas in October 2012. This could give Qatar a foothold in the US energy industry.
economy
ryx GTL, the world’s first commercial gas-to-liquids project, is a $1 billion 51:49 Joint Venture between Qatar Petroleum and Sasol of South Africa. The plant converts 330 million cubic feet per day of natural gas into 24 thousand barrels per day of high grade diesel, 9,000 barrels per day of naptha and 1,000 barrels per day of LPG. Oryx’s state-of-the-art complex in Ras Laffan has a total GTL output capacity of around 34,000 barrels per day. It has exported more than 20 million barrels of premium GTL products since it started commercial production in 2007. The products were initially sold on the spot market and subsequently on three- to six-month term contracts primarily to a diverse international customer base who seek high-performance, low-emission diesel and high-grade naphtha. The majority of the GTL diesel is sold to Europe, while GTL naphtha is being supplied to customers in India, Malaysia and Japan. Oryx’s GTL is making a remarkable contribution to Qatar by enabling it to add value to its natural gas resources by transforming raw gas into globally marketable and easily transportable liquid fuels. The company is the first of a series of planned GTL production facilities that will deliver on Qatar’s ambition to become the GTL capital of the world. The pioneer in producing clean burning gas-to-liquids (GTL) fuels, Oryx GTL powered up to 100 delegate buses at the UN Climate Change Conference held in Doha. Oryx GTL diesel, a high specification fuel meeting the strictest international standards on particulate emissions was used for the buses transporting the delegates during COP18. The company aims to raise awareness of the environmental credentials of GTL diesel as an alternative fuel.
Production of major petrochemical facilities (2012) Product
Exisiting capacities (kilo tons/y)
Expansion underway (kilo tons/year)
Ethylene
2600
1100
Alpha Olyefins
350
300
Propylene
170
Intermediate products
2950
HDPE
803
Caustic Soda
730
LDPE
700
MTPE
610
LLDPE
450
Hexane
47
Ethylene Glycon Final Products
1570
1500 2882
1500
economy
Source: QNB Qatar Economic Insight 2012
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of the project was to be funded by international banks and export promotion agencies while the rest will be equity funded. The project met with an overwhelming response and was able to raise more than $8 billion as against the set third-party financing target of QR24 billion ($6.6 billion). Major participation from Islamic banks in Qatar allowed QP to create the largest ever Islamic tranche in its financing history. It is the world’s largest project financing to close in 2011 and one of the largest oil and gas project financings ever concluded. It comprises a commercial bank facility of QR12 billion ($3.34 billion), a QR3090 million ($850-million) Islamic facility and QR9.3 billion ($2.55 billion) of export credit agency (“ECA”) financing. The project is designed to accommodate a maximum of six trains and is the largest after the Pearl GTL project. The project will produce 1.9 billion cubic feet a day of gas to be used for domestic consumption when the project starts production in 2014. Hydrocarbon outlook The GSDP economic outlook report states that oil prices will average at $110 per barrel in 2013 bucking its firm trend untill 2012. Despite the general economic slowdown and the sharp contraction in eurozone demand, oil prices stood firm due to geopolitical tensions in the Middle East. On LNG price outlook, the report states, “The global market for gas is geographically segmented, with different demand and supply factors driving prices in the US, Europe and Japan. Spot gas prices in Asia are expected to climb in the forecast period, buttressed by growing demand, particularly from emerging markets such as China, India and by additional demand for LNG from Japan as it seeks to replace nuclear energy with gas-fired power generation.” According to Business Monitor International (BMI), Qatari gas
production will exceed 190 billion cubic metres (bcm) by 2021 and consumption will rise to 68 bcm over the same period. BMI forecasts that gas exports will peak in 2015 at 126bcm and gas exports will remain at that rate until the end of 2021. The report stated: “We expect a 20% increase in oil production in the period 2011-21, with a small increase in net exports. The rise in Qatari refining capacity will boost domestic consumption of crude oil, while Qatar will also start exporting more fuels as a result of the start-up of Pearl GTL. Qatari proven oil reserves remaining broadly flat in the period 2011-21, with gas reserves declining in the same period by about 7%. Exploration successes create upside risks to these forecasts. The successful execution of Pearl GTL will boost Qatar’s petroleum export revenues and also bodes well for feedstock supplies to Qatar’s petrochemicals sector. Our assumptions of a slower growth in China, a faltering recovery in the US and a worsening eurozone debt crisis, pose a threat to global oil demand.” QP: Spearheading the hydrocarbon industry QP is the key player in Qatar’s hydrocarbon industry. It owns a stake in all major oil and gas projects, be it upstream or downstream petrochemicals. It is also securing Qatar’s position in the global energy market by investing in oil assets through its international arm, QP International (QPI). QPI has been investing in strategic oil assets abroad including in the US and Europe. It has also indicated that it will be interested in Australia’s upcoming LNG facilities. QP is also investing heavily in the MENA region. It recently announced an investment in a QR13 billion ($3.6 billion) refinery in Egypt. The new refinery is expected to cut Egyptian diesel imports by up to 50%. QPI has also expressed interest in the Yamal LNG project in the Russian Arctic, and the Russian gas producer Novatek. QPI currently manages a multibillion dollar portfolio of investments in upstream, gas and power, refining and petrochemicals, and other midstream and downstream activities. Current QPI interests in LNG terminals include South Hook, Adriatic and Golden Pass. QP is also involved in various research projects related to the oil and gas industry in partnership with its international partners and QSTP. In 2012, Qatar Petroleum and Total embarked on a research and technology project on carbonates acid stimulation. This project aims at increasing hydrocarbons production in Qatar by addressing a major concern in carbonates oil and gas fields – improving significantly the efficiency of acid stimulation. Hydrocarbons geological reservoirs are carbonates reservoirs in Qatar. These carbonates dissolve in acid. Thus, the main idea of this project is to improving the permeability of the reservoirs and, hence, the productivity of the producing wells. In another development, QP and Total have extended their partnership for a further 25 years for operating the Al Khaliji field. The Exploration and Production Sharing Agreement (EPSA), which was signed in 1989 is due for expiry in early 2014. Under the new agreement, QP and Total will have a 60/40 operating interest in the field and Total will continue to operate the field
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t Dolphin’s gas processing plant at Ras Laffan, valuable products such as LPG, condensate, ethane and sulphur are extracted for sale. All byproducts are sold on the world market, with the exception of ethane, which is sold in Qatar. The gas supplied by Dolphin Energy is consumed by utilities in the UAE and Oman, meeting the energy needs of those countries. Since February 2008, Dolphin Energy has been supplying two billion standard cubic feet (SCF) of gas per day to the UAE and Oman. Output can be expanded to 3.2 billon SCF per day in the future, subject to agreement between the Qatari government and the Emirate of Abu Dhabi, and is governed by detailed production agreements between the two states. In 2011, Dolphin Energy produced and exported 730 billion SCF of lean gas, the maximum allowable annual production limit as outlined in the Development and Production Sharing Agreement (DPSA). Dolphin achieved a significant milestone when cumulative production crossed three trillion SCF feet of natural gas since production commenced in 2008.
Speaking to Progress, Adel Ahmed Albuainain, General Manager, Dolphin Energy, Qatar said: “Our main goal was to support the development of new industries, helping to create sustainable wealth, economic growth and employment opportunities for the citizens of the region.” Contribution to the region Elaborating on what the project has achieved in the region, Adel Ahmed said: “Dolphin Energy is contributing to economic and industrial development and supporting the requirements of the population growth of all three countries involved. We have been able to create solid business opportunities through the relationships we have struck with our stakeholders, whether they are contractors, NGOs, suppliers, investors or shareholders.” Asked how Dolphin Energy is supporting Qatar’s 2030 Vision, he said: “One of the challenges the Vision seeks to address is how to balance economic growth, social development and environmental management. These key areas were embraced by Dolphin Energy from its inception, and the company has worked hard to ensure it balanced its approach to all three. Dolphin En-
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Dolphin Energy is ONE OF A kind international energy project linking three countries – Qatar, the UAE and Oman – a gas network that makes a significant socio-economic impact on theM ALL. The project involves the production of raw natural gas from 24 deep wells at Qatar’s offshore North Field, which IS processed onshore at Ras Laffan and distributed through a 364 km, 48-inch sub-sea export pipeline from Qatar to the UAE - the longest export pipeline network in the Middle East.
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Dolphin creating milestones
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“Electricity demand throughout the region is set to grow. The need to maintain energy security will drive strategies resulting in a more integrated energy mix and more energy efficient practices and policies.” Adel Ahmed Albuainain General Manager, Dolphin Energy
ergy took this commitment further by embracing sustainability management principles so that its entire operation is now measured by its sustainability performance.” In a recent sustainability report, released in July 2012, the company stated that flaring and greenhouse gas emissions reduced by 26% and 4.7%, respectively, and over 9.5 million (QR34.6 million) had been spent on environmental protection in 2011. It also reported a 39% increase in recycled materials use. To develop the local workforce, Dolphin works with educational institutions to provide internships, scholarships and career opportunities. Adel Ahmed said: “The company also sponsors many community initiatives that encourage people to develop their talent. Examples include the work we have done to encourage and engage Young Future Energy Leaders, and our support and sponsorship of activities that are helping develop the next crop of energy engineers, budding filmmakers and young scientists.” According to the sustainability report, Dolphin recorded a profit of $1.9 billion (QR7.2 billion), the company’s highest single-year profit to date. In 2012, the company raised $1 billion (QR3.64 billion) from a 10-year bond sale priced at 5.5%. According to Adel Ahmed, the net proceeds from the sale will
be used to refinance the commercial facility on the financing secured in 2009 and make a distribution to shareholders. “Despite tough market conditions, we were able to secure more favourable rates on our existing bond, which demonstrates the regard in which we are held among the institutional investment community,” he said. Outlook for the Energy sector According to Adel Ahmed, the energy sector will see continued investment to fund the development of more renewable and nonconventional sources of energy. “Electricity demand throughout the region is set to grow. The need to maintain energy security will drive strategies resulting in a more integrated energy mix and more energy-efficient practices and policies.” “International oil companies and national oil companies will collaborate more on research and technology development and look at ways to be even more efficient. Natural gas will have a significant role to play in helping meet the growth in demand and offer the opportunity to use a low-carbon energy resource. With long-term contracts in place, Dolphin Energy is set to play a key role in ensuring energy security for the UAE and Oman for the next 20 years and beyond,” Ahmed added
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The buying power How Qatar is using its wealth to achieve strategic goals
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he buzz around Qatar’s sovereign wealth fund, the Qatar Investment Authority (QIA), never seems to die. QIA has been in the news throughout the year striking strategic deals – be it the stakes in Shell and BAA, a face of with Glencore on Xstrata acquisition or its East Asian forays. The SWF reportedly has assets to the tune of QR418 billion ($115 billion) as of September 2012 and has close to QR109 billion ($30 billion) to invest in 2012 alone. It is the 12th largest sovereign wealth fund in the world according to Sovereign Wealth Fund Institute. Earlier during the year, a high ranking official had indicated that QIA’s assets are worth ‘much more’ than QR364 billion ($100 billion). European continues seem to be its favorite market as it eyes distressed sellers looking to en cash. However, the focus this year seems to be on buying strategic assets with a long term view rather than high profile ‘show-off ’ assets. Latest acquisitions in BAA, Shell and Total indicate a more strategic focus. QIA’s gas investments In 2012, QIA bought a 3% stake in France’s Total SA and increased its stake in Shell reportedly to 5%. It has expressed interest to take its stake to 7% and become the largest shareholder in Shell. QIA is also interested in buying a stake in Italy’s Eni, a multinational oil and gas company present in 79 countries.
Both Shell and Total have active partnerships in Qatar’s LNG segment. Shell’s QR69 billion ($19 billion) Pearl GTL is Qatar’s largest oil and gas investment so far and is also of strategic importance to Shell. Through its investment in Shell, Qatar gets access to the developing vast LNG resources in America, Australia and China, thus maintaining its dominant position in the LNG market. Shell plans to explore the vast new found Shale gas reserves in US and China, two major countries holding such reserves. Looking East Qatar has been actively looking at the East Asian markets for investment. It had earlier during the year indicated that it is keen to invest in emerging markets and commodities. During the year, Qatar received the Qualified Foreign Institutional Investor (QFII) license from China. The license allows Qatar to invest in the fast growing Chinese markets. The scheme is the main channel for foreign investment in Chinese stock and bond markets. In April, China increased its foreign investment limit from QR100 billion ($30 billion) to QR290 billion ($80 billion). Qatar had applied for a QR18 billion ($5 billon) quota under the QFII scheme. Since the start of 2012, the China Securities Regulatory Commission has approved 52 QFII licenses and
Europe is still a favourite QIA has been keen on buying distressed assets in the Europe as it believes Europe is a long-term fundamental story and valuations are currently beaten down due to the European crisis and the global slowdown. In the last couple of years, it added a number of high profile show-off assets to its kitty like the Shard, Harrods, Chelsea Barracks etc. This year’s acquisition of BAA and its recent announcement to buy stakes in seven leading European banks show its interest in distressed businesses which the QIA believes has long-term growth prospects. Stakes in Financial Services Qatar owns stakes in Barclays and Credit Suisse and is in talks to buy the commodity business of Morgan Stanley. The Qatar Financial Centre is working hard to promote Qatar as an asset management hub and owning stakes in these financial big wigs helps.
Recently, Credit Suisse and Qatar’s sovereign wealth fund launched an asset management joint venture named Aventicum Capital Management that will be based out of Doha. Credit Suisse is also reportedly moving its investment banking team to Qatar from Dubai. Credit Suisse has worked with QIA on several deals earlier. Qatar’s sovereign wealth fund is Credit Suisse’s second-largest shareholder with a 6.2% stake. In another development, QIA through Qatar Asset Management Company decided to invest $250 million in Barclays Natural Resources Investment (BNRIs) portfolio that invests in natural resource investments across the world. As part of the deal, Barclays moved the Middle Eastern unit of Barclays Natural Resource Investments to the QFC at Doha. The Glencore face-off Qatar’s might was on full display to the world as it battled it out with Glencore on its proposed merger with Xstrata. QIA owns 12.3% stake in Xstrata. Qatar refused to accept the share swap ratio of 2.8 proposed by Glencore and demanded a higher swap ratio of 3.25. Both QIA and Glencore refused to budge from their stance delaying the decision. Glencore is a Swiss-based commodities trader and Xstrata, a mining company with interests in coal, zinc and other metals. Qatar refused to support the merger until its terms were agreed too, threatening to stall the deal. The deal was finally approved in November 2012 with Glencore offering to exchange 3.05 of its shares for each Xstrata share. Qatar finally supported the merger but refused to support the payoff ’s planned for Xstrata’s management as part of the deal. SWF are usually passive investors. However, Qatar negotiated its way through the deal displaying its increasing clout
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Stake in European Airports Qatar Holdings bought a 20% stake in BAA that operates several airports in the UK and Scotland including the Heathrow, Glasgow, Aberdeen, Southampton and Stansted airports. The stake may be of strategic importance to Qatar’s soaring ambitions in the aviation sector. Qatar Airways, the state-owned airliner has gone through a meteoric rise in the last decade to emerge as one of the leading airlines in the region. The opening of Doha’s new airport and the frantic flight acquisitions by the airline are a testimony to its ambitions. A stake in BAA may fit well into its interests in the aviation sector. Moreover, the valuations of BAA have remained static for over five years affected by low traffic at BAA airports due to the financial crisis.
economy
$9.18 billion in quotas, as against 29 licenses and $1.92 billion in quotas last year. Upon receiving a license from the China Securities Regulatory Commission, QFIIs must apply to the foreign exchange regulator for an investment quota, which determines the maximum amount of funds they are authorised to invest. QIA has also bought a 22% stake in CITIC Capital Holdings, one of China’s top investment funds. CITIC manages $4.6 billion and is partly owned by China Investment Company, China’s own sovereign wealth fund, which manages $482 billion. This would further steer Qatar’s Chinese investment plans. Qatar, in partnership with Korea, has committed to invest in worldwide infrastructure projects. At the recent meeting of the High Level Strategic Consultation Committee between Korea and Qatar, Qatar Holdings and Korea’s Ministry of Land, Transport & Maritime Affairs agreed to make joint investments in infrastructure projects.
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he banking sector growth was supported by lending to the public sector and infrastructure segment. Total domestic credit grew by almost onefifth for the nine months ended September 2012. Credit to the public sector grew by two-thirds in September as compared to a year ago. The public sector accounts for almost half of total domestic credit. Net profit of all listed banks collectively increased by 9.5% for the nine month period ended September 2012 as against the nine month period ended 30 September 2011. QNB, Qatar’s flagship state-owned bank lead the growth registering a 42% growth in loans and 15% increase in profitability for the September 2012 quarter as against the Q3-2011. QNB was the fastest growing bank in the MENA region. According to an ‘Arab banks ranking’ conducted by The Banker journal, the Qatari banking sector lead the growth, accounting for three of the top five Arab banks by Tier 1 growth. According to S&P, the outlook for lending growth remains healthy for Qatari banks. S&P said, for banks in Qatar and elsewhere in the GCC region, funding profiles have improved vis-
ibly in the past few years. S&P believes that profitability for GCC banks will continue to improve again this year primarily due to reduction in the amounts set aside as provisions against loan losses. The report said despite the turmoil in regional markets since 2008, most GCC banks have been able to protect their net interest margins as they were able to continue to price their loans at decent levels. Commenting on the growth prospects, Robin McCall, Group CEO of Al Khaliji, said: “We foresee increased momentum developing with regards to the planned Qatar infrastructure spends. Al Khaliji remains well positioned to participate in this build out and we will continue to support this credit growth with our preferred customers. Our liquidity and funding position is a key focus area where we intend to remain strong against a backdrop of uncertain global market conditions. We intend to make a bond issuance in 2013 to further strengthen our long-term funding arrangements.” Uptake in Bond market According to QNB analysis, $233 billion (QR850 billion) worth
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The banking industry expanded at break-neck speed in 2012 as it continued to finance the large public sector projects being rolled out. demand for long-term project financing is expected to increase in the year ahead as more huge projects break ground. Qatari banks are raising capital through international funding indicating growth in the coming year.
economy
Outlook good for Qatar Banks
economy
fiscal and external balance sheets. Qatar’s debt issues have been received well in the international markets. S&P’s rating applies to all sovereign debt raised by Qatar.
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Banks go for dollar funding Over the year, banks have raised debt abroad to fund infrastructure projects in the country. Standard & Poor’s (S&P), in its November 2012 credit rating report, mentioned that it estimates the banking system’s net external liability position in 2012 to stand increased to $22 billion (QR80 billion) from $12 billion (QR44 billion) in the previous year. It also expected Qatar’s net external asset position to continue to grow to over 100% of current account receipts as the government continues to accumulate external assets with fiscal surpluses invested abroad through the Qatar Investment Authority According to a QNB Group analysis, outstanding GCC foreign bonds have grown at an annual rate of 21% since Q1-2007. This rapid growth has happened partly to compensate for the decline in international syndicated loans, which fell from $112 billion (QR408 billion) in 2007 to $32 billion (QR116 billion) in 2011 and just $8 billion (QR29 billion) in the first half of 2012. This decline, it says, is most probably a result of global banks, particularly European ones, reducing their international exposure following the 2008 financial crisis. An IMF Research note quoted by the Peninsula noted that Qatar saw a 19% drop in lending from euro area banks between Q1-2011 and Q1-2012. Robin McCall CEO, Al Khaliji Bank
of debt securities are in circulation in the GCC and that is equivalent to 17% of the region’s GDP. Qatar had issued sovereign bonds and sukuks worth $19 billion (QR69 billion) and $4 billion (QR14.5 billion) in 2011 and 2012, respectively. Corporate debt issuance across GCC has risen strongly in 2012, accounting for 75% ($29 billion; QR105 billion) of new bond issuance, more than double the corporate bond issuance of $14 billion (QR51 billion) in 2011. QNB Group expects that regional companies will continue to drive bond issuance higher in 2013 for a number of reasons. Firstly, tapping debt markets has the benefit of broadening the investor base of GCC companies. Secondly, companies will be keen to take advantage of the prevailing low interest rate environment. Thirdly, strong growth is expected in the GCC, which will drive continued demand for project financing. Fourthly, the global ambition of leading regional companies will continue to drive their international expansion, sustaining demand for financing. Fifthly, many companies will need to refinance existing debt issues, particularly in the UAE. Finally, as the introduction of Basel III standards gets closer, more banks in the region could look at raising core capital through debt. Qatar continues to enjoy strong credit rating by S&P backed by Qatar’s high levels of economic wealth and the country’s strong
Qatar prepares for the debt boom As a precursor to facilitate a bond market, the QCB launched QIBOR, a benchmark inter-bank rate index and a Credit Rating Agency to rate debt securities. QIBOR (Qatar Inter Bank Offer Rate) is the rate at which banks borrow unsecured loans from each other and will be based on rates submitted by participating banks on a daily basis. Globally, investment products use interbank rates as a reference point and it is expected to encourage an active inter-bank market in Qatar. Launching QIBOR, HE Sheikh Abdula Saoud Al-Thani, Governor of Qatar Central Bank (QCB), commented: “Introducing QIBOR will enhance transparency and promote liquidity.” Qatar’s own Credit Rating Agency is expected to provide cheap rating facilities for securities in the local market. Currently, rating services are provided by expensive international firms. As infrastructure projects start rolling, more companies are expected to go for debt. These steps may ease the process for local companies. In 2011, the Qatar Credit Bureau was established to provide credit information services to banks and public policy makers to aid decision making. The bureau provides information that is used for economic and public debt management, framing and following up with policies and laws regarding loans, to monitor debt ratio, and analyse credit risk and allocations. In the first phase that is currently underway, the bureau provides services such as credit information report, credit scoring, customer’s account monitoring, and portfolio monitoring re-
Other developments Basel III norms, the global banking standards will take effect in 2013. The new standard specifies stringent capital adequacy norms. Most Qatari Banks would already be Basel III compliant
Raghavan Seetharaman CEO, Doha Bank
as they are adequately capitalised. As credit picks up in the next couple of years, these norms may help banks keep a check on the risks. The state owned QNB is on a buying spree investing across the MENA region that is recouping from the Arab Spring. During 2012, it raised its stake in Abu Dhabi’s Commercial Bank International to 40%, Iraq’s Mansour Bank to 51% and further acquired a 49% stake in Commerce and Development Bank in Libya, one of the leading private sector banks in the country. The bank is currently in talks to buy the Egyptian arm of French lender Societe Generale. The acquisitions are in line with Qatar’s strategy of diversifying abroad and getting a stake on opportunities in the MENA region. Several other banks such as Doha Bank have also expressed interest in expanding abroad. Local banks have approached the banking regulator, QCB, for permission to open branches in some European and Arab countries. Doha Bank CEO, Raghavan Seetharaman has said that the bank is looking to expand. In an interview to Qatar Today, he said, “We recently opened a new office in Abu Dhabi. It is a good market, so we definitely intend to enjoy some success there. We have commercial gates all around the world, including South Korea, Singapore, Turkey, London, Frankfurt, Japan and China.”
41 PROGRESS 2012-2013
Closure of Islamic Banking window The QCB, in a significant decision, ruled that conventional banks should close all Islamic Banking operations by end 2011. At a time when Islamic Banking industry was clocking double digit growth rates, faster than conventional banks, the decision was expected to be a big blow to the growth prospects of conventional banks and a boost for the Islamic Banking industry. Out of total Islamic banking assets of $596 billion (QR2.2 trillion) in 2010, the Middle East accounted for $229 billion (QR833 billion). According to the Financial Times, the assets under Sharia’acompliant management in the region are forecasted to increase to $990 billion (QR3.6 trillion) by 2015. Bloomberg quoted S&P as saying Global Islamic financial assets will double by 2015 to as much as $3 trillion (QR10.9 trillion). Islamic financial assets are currently valued at $1.3 trillion (QR4.7 trillion). One year later, the decision has not had a major impact on the growth of conventional Qatari banks. Their business and profitability continued to grow at a healthy clip as most of them were able to convert their Islamic customers to conventional banking. Moreover, QCB had allowed banks to retain current Islamic accounts till maturity. The sharp growth in credit uptake also helped camouflage the impact of the ruling. Barwa Bank, the most recent bank to start operations in Qatar, was a beneficiary as it took over International Bank of Qatar’s Al Yusr Islamic retail banking operations, instantly jacking up its portfolio. Receiving the Islamic Finance News ‘Qatar Deal of the Year’ award for the acquisition, Steve Troop, CEO, Barwa Bank Group said, “2011 witnessed a strong leap forward for Barwa Bank and we are confident that the positive economic climate and promising opportunities in Qatar will continue to be the foundation for greater achievement by Barwa Bank in years to come.” It launched a slew of products last year and also plans to list on Qatar Exchange. Among the foreign banks, HSBC had to close down its Islamic window just three months after it started operations in Qatar. The ban is proposed to be extended to banks and insurance companies in the Qatar Financial Centre too to avoid exploitation of regulatory loopholes The QCB had also curbed retail lending by banks and increased lending limit to the real estate sector in 2011. The impact of the ruling was felt in an 11% fall in retail creditas of September 2012 as against a year ago. Real estate sector lending was up 7% for the same period.
economy
ports for banks and financial institutions. In the second phase, the bureau’s services will extend to reach other sectors like telecommunication, insurance and services. These steps create an eco-system to support credit off-take in the country.
economy
Future looks bright PROGRESS 2012-2013
42
The insurance industry is excited about the future prospects for the business. The region has traditionally been an underinsured market.
T
otal premiums account for less than 1.5% of GDP, a fifth of the global average. The upcoming huge infrastructure projects, increasing awareness about the need of personal insurance policies and introduction of new compulsory lines of business, specifically health, opens up a huge opportunity for insurance companies. The QFC is playing a key role in the development of Qatar as a captive and re-insurance hub by creating a conductive regulatory environment and bringing market participants together in events such as the MultaQa. QFC’s research initiative – the GCC Insurance and Reinsurance Barometer is an effort to assess the market mood and promote discussions among industry professionals. These are exciting times for the insurance business in the region. High growth ahead At a macro level, Qatar is expected to be one of the fast growing countries in the region translating into a vibrant insurance market. According to the GCC Reinsurance Barometer, September 2012, a research study supported by the QFC, “Total non-life and life premium volume in the GCC for 2011 is estimated at QR54 billion ($14.9 billion) and projected to reach QR66 billion ($18 billion) by 2013. Life insurance business is growing faster than the non-life segment but continues to be of marginal
importance with a share of less than 15%. Between 2006 and 2010, GCC insurance premiums expanded almost five times as fast as the global average, with Qatar registering an impressive 12% nominal growth p.a.” The insurance market is poised for phenomenal growth given the massive under-penetration and strong macroeconomic environment. Key Growth sectors Infrastructure, construction, life and medical insurance are expected to be the fastest growing sectors within the industry. Infrastructure: Qatar has been investing heavily in infrastructure. Over QR364 billion ($100 billion) worth of projects are underway and many more in the pipeline. Infrastructure and construction projects dominate the pipeline of projects, accounting for over a half of the planned investment. The hydrocarbon sector contributes the rest. As investments increase, so does the need to diversify risks and hence, an opportunity for insurers. Compulsory health insurance: As Qatar rolls out its social health insurance scheme; a boom is expected in the health insurance business. Traditionally, the government has acted as the insurer of last resort and hence the lack of awareness about the need for insurance products. As the onus of bearing healthcare costs shift from the government to the residents and their employees, life and health insurance products will fill the void.
Key challenges Some of the key challenges facing the industry are its relatively small size, lack of regional co-operation at the regulatory level, low investment yields, focus on topline growth rather than long term profitability and severe competition leading to underpricing. The high cessation rates that lead to a dependence on reinsurers is yet another challenge. Regulatory Reforms The QFC Authority is playing a key role in developing the insurance sector in the country by offering an attractive tax regime and tightening the regulatory environment. The captive and reinsurance companies registered with the QFC are exempt from tax, making Qatar an attractive option. Further, the QFC Authority issued new insurance regulatory frameworks, the Captive
Insurance Business Rules 2011 (CAPI) and Insurance Mediation Business Rules 2011 (IMEB). The new rules bring in a degree of flexibility in captive structuring encouraging captive business. GCC Insurance Barometer The GCC Insurance and Reinsurance Barometer is a key research initiative launched by the QFC that provides quarterly updates of industry trends and business confidence. The barometer shed light on some key developments in the industry. It noted that: Medical life insurance segment will be the fastest growing segment but with the least profitability. Overall profitability for the reinsurance business is expected to improve due to better pricing and tighter terms and conditions. GCC continues to be an attractive destination for reinsurers due to an attractive high growth, low-catastrophe market. The need for geographic portfolio diversification following the catastrophe losses of 2011 also makes a case for capacity creation in the GCC. The cessation rates-the proportion of risk transferred to a reinsurer-is showing a declining trend. This is attributable to above-average growth in personal lines such as motor and medical insurance. These lines of business display significantly lower cession rates than more volatile commercial segments of business. In the next couple of years, the industry could undergo a transformation fuelled by new players and products
economy
Captive Insurance: Large business houses that execute huge projects may want to manage internal risks arising from its businesses through a dedicated insurance company. This is called captive insurance. Qatar’s potential for captive businesses is substantial as local businesses expand and large value projects executed increase. This requires dedicated risk managers. Reinsurance Hub: The GCC reinsurance market valued at QR18 billion ($5 billion) and reinsurance growth is expected to outpace GDP growth. In the aftermath of the 2011 catastrophe, globally insurers are looking at geographically diversifying risks. Qatar’s low exposure to natural perils makes it an attractive market.
43 PROGRESS 2012-2013
His Excellency Yousef Hussain Kamal, the Minister of Finance, speaking at the Multaqa conference held in 2012
Qatar Exchange has taken long strides in developing the equity market in the country. The exchange has addressed a number of issues in the last four years in an effort to make it a world class facility on par with a number of developed exchanges.
Q
E’s partnership with NYSE Euronext was a key development in the evolution of the exchange. Since this collaboration was confirmed, QE upgraded to a state-of-the-art trading platform called the Universal Trading Platform (UTP) that ensures fast, safe, reliable and an efficient trading environment. It upgraded its system to the Delivery versus Payment (DvP) model, a post-trade system used worldwide by most exchanges and ensures smooth delivery of trades executed. DvP implementation was one of the key pre-conditions for getting an MSCI upgrade. This highly anticipated upgrade proved a step too far upon review in June 2012. Lower foreign ownership limits is said to be the key obstacle in getting an upgrade from ‘Frontier Market’ to ‘Emerging Market’ classification. An upgrade to ’Emerging Market’ status could attract foreign inflows into the Qatari stock market and deepen investor interest in the country. Only Morocco and Egypt have the Emerging Market status in the MENA
region to date. QE has taken a number of steps to improve liquidity, ease operations and reach out to investors in order to promote the Exchange. Recently, during a visit by a Chinese delegation to the QE, Rashid Bin Ali Al-Mansoori, CEO of Qatar Exchange, indicated that Qatar will look forward to a long and mutually beneficial working relationship with the Shanghai Futures Exchange and the China Securities Regulatory Commission. Operational developments Last year, the QE allowed investors to open an account and trade through a network of brokers. A total of 11 brokerages operate in Qatar, including QNB Financial Services, Commercial Bank, Ahli Bank and Masraf Al-Rayan. Trading hours were extended and tick-sizes adjusted to provide more opportunity for investors. The capital markets have been liberalised to include business areas such as asset management, custody, fixed-income and research, bringing in sophistication to the market. A deepening
economy 45 PROGRESS 2012-2013
Developing Capital Markets
economy
product market is also expected to improve liquidity and attract foreign investors. Market disclosures have been improved on its website and efforts are being made to reach out to investors and create awareness. QE has been trying to entice foreigners to invest in the market – both institutional and retail.
PROGRESS 2012-2013
46
New indices launched Several new indices were launched in April 2012, which are expected to increase transparency and widen the choice for investors. New investment products can be launched in future based on these indices. The indices launched during the year are Total Return Index, All Share Index and seven sector indices for banks and financial services, industrials transportation, real estate, insurance, telecoms and consumer goods and services. The Total Return Index launched in 2012 will provide investors an opportunity to take advantage of high dividend yields. It reflects the sum of the yield on the company’s share price as well as the dividend reinvested. The sector specific indices give a deeper understanding of the performance of the underlying sectors. It will also increase sector-specific information available to analyse performance and make more focused investments. Trading in Treasury Bills was also introduced. Other products in the pipeline include Securities Borrowing and Lending, Direct Market Access with liquidity provision, Margin Financing, Exchange Traded Funds and Real Estate Investment Trusts. QE Venture Market To give a boost to the SME sector and help small companies raise finance, QE introduced the QE Venture Market. The listing and disclosure requirements for the junior market will be relaxed compared to the larger market in order to facilitate the entry and functioning of smaller companies. Applications are being solicited from companies willing to register in the junior market. Enticing non-Qatari retail investors The QE has been attracting the larger expatriate investor community in Qatar to invest in the Qatari Stock Exchange. Close to
85% of Qatar’s residents are expatriates. These investors mostly invest in their home countries or internationally. QE is making efforts to tap into this market. Throughout the year, QE has given many presentations to local business councils. Investing in QE is not a function of residency status in Qatar. Investors can continue to trade or liquidate even after they have given up residency status. QE has simplified account opening procedures and trading can be done online without the need to visit the exchange. QE Performance QE’s performance during 2012 remained subdued in line with the moderate growth recorded by the Qatari economy. The index fell 2.7% to close at 8546.5 as of October 31, 2012 compared to the 2011 close. The market capitalisation of the exchange as of October 2012 was QR467.5 billion. The dividend yield – the returns based on the dividends paid by a company – for the exchange remained reasonable at 3.63%, although it was lower than the previous year. Cash rich Qatari companies pay generous dividends. QE has been highlighting this point to attract investors. At a price to earnings multiple of 12, QE is still trading at a discount to its peers in the region. As infrastructure spending increases in the coming years and fresh capacities created in the last few years start yielding results, Corporate Qatar can look forward to better profitability. QNB and Industries Qatar are the two primary stocks in the index accounting for close to 35% of the total market capitalisation of the index. The top five performing stocks for 2012 were Dlala Brokerage and Investment Holding, Mawashi, Qatari Investor Group, Medicare Group and Mazaya Qatar Real Estate Development. ‘Exchange for the year’ award for QE For the second time in a row, QE won the ‘Exchange of the year’ for the Middle East award in 2012 by Global Investor magazine. The criteria for the award relate to significant achievements and accomplishments made by the winning exchange. The award recognises the concrete efforts of QE in developing the capital markets in Qatar
T
here has been a quantum leap in the number of companies registered in the last two years, 22 companies in 2011 and 16 companies in 2012 as of October; a testament to the focused strategy and the strengthening regulatory regime within the QFC. The centre is now home to 166 compa-
nies. In 2010, the QFC decided to focus on the creation of hubs in three niche sectors in reinsurance, captive insurance and asset management and made regulatory changes to facilitate growth in these segments. As a result, a number of leading regional and global asset managers are located in the QFC. These include AXA Investment Managers, Credit Suisse, Barclays Capital, the Industrial and Commercial Bank of China and Deutsche Bank. Local investment managers QNB Capital, Qatar First Investment Bank, Concordia Capital and Amwal are also based here. QFC has been successfully projecting Qatar on the regional and international stage by supporting and organising many high profile summits and conferences where global financial
professionals get to interact, network and share thoughts on the business environment. In addition, a number of financial research initiatives have been supported by the QFC to provide information and business intelligence about the region. The QFC was established to attract international financial services and multinational corporations to grow and develop the market for financial services in the country. It consists of a commercial arm, the QFC Authority (QFCA), and an independent financial regulator, the QFC Regulatory Authority (QFCRA). It also has an independent judiciary which comprises a civil and commercial court and a regulatory tribunal. All disputes emerging from the QFC are to be settled in the Qatar International Court and Dispute Resolution Centre. The QFC allows businesses to operate both locally and internationally, allows 100% ownership by foreign companies and all proits can be remitted outside of Qatar. It offers an attractive corporate tax rate of 10% on locally sourced profits, which compares favourably with other financial centres. Re-insurance and captive insurance firms benefit from a concessionary zero rate of taxation.
economy
Since the Qatar Financial Centre (QFC) was established in 2005, it has made significant progress in creating a more attractive business environment in the country and showcasing Qatar as a global financial centre among international financial circles. Progress looks at its latest developments.
47 PROGRESS 2012-2013
QFC: attracting global businesses
economy PROGRESS 2012-2013
48
The extremely positive regional economic growth prospects, the attractive tax benefits offered by the QFC and Qatar’s political stability have attracted many global companies to set up shop there. Strengthening regulatory regime The QFC is making a sincere effort to reach out to the global investor by creating a favourable business environment in the country. Steps taken include strengthening the regulatory, legal and supervisory environment and altering rules to allow for wider participation. In an attempt to widen the type of companies operating out of QFC, it issued new rules for governing special purpose companies (SPC), holding companies and single family offices (SFO) during the year. The Special Company Regulations (SCR) and Single Family Office Regulations (SFOR) provide for a more attractive legal, regulatory and business environment. It will expand the range of services the QFC firms can offer and the structures they may adopt. SPCs are entities created to fulfil specific or temporary objectives and are granted a number of exemptions which would not ordinarily apply to conventional companies in the QFC. In addition, corporate and administrative services can be provided to SPCs by a Support Service Provider licensed either in the QFC or in another jurisdiction subject to approval. The SFOR permit SFOs to provide services to a single family. An SFO is a private company dedicated exclusively to the investment, legacy and financial needs of one wealthy family. Amendments are also being considered to other regulations such as the AntiMoney laundering rules, Governance and Controlled Function rules and rules regarding Islamic Finance windows.
Key partnerships QFC became a signatory to the International Association of Insurance Supervisors (IAIS) Multilateral Memorandum of Understanding (MMoU), an important regulatory tool that will assist insurance supervision according to global standards. The IAIS issues global insurance principles, standards and guidance papers for supervisors on insurance supervision and works closely with other financial sector standard setting bodies and international organisations to promote financial stability. The MMoU will assist cross border oversight of companies in the QFC and help promote financial integrity and appropriate customer protection in Qatar. It will provide the QFCRA a formal framework for the secure exchange of supervisory information with insurance supervisors around the world. A number of MoUs have been entered into to promote stronger cross-border regulatory oversight and supervisory information sharing. MOUs were signed by the QFCA and the QFCRA in 2011 with overseas counterparts in China, India, Japan, Turkey and the UK. In 2012, The QFCRA entered into a MOU with the Commission de Surveillance du Secteur Financier (CSSF), an organisation responsible for the prudential regulation of the banking and securities sectors in Luxembourg. The signing of the MOU provides the basis for future co-operation between the regulators, including the sharing of information, resources and assistance regarding financial institutions operating in both the QFC and Luxembourg. QFC Ăs effort to attract asset management companies to Qatar received a huge push when Barclays Natural Resource Investments (BNRI) entered into a partnership with Qatar Asset Management Company (QAMC). Under the partnership,
Firms registered in 2012 DIC Holding LLC
The business of a Holding Company
Innovation Capital Qatar LLC
1/4/12
Intended- Regulated Activities
Neo Holding LLC
10/4/12
The business of a Holding Company
Retiro Holding LLC
10/4/12
The business of a Holding Company
Pinsent Masons LLP - QFC Branch
30/04/2012
Professional Services (Legal)
Booz Allen Hamilton Inc. - QFC Branch
30/04/2012
Professional Services (Consulting)
Al-Rayyan Holding LLC
9/5/12
The business of a Holding Company
Wakra Holding LLC
9/5/12
The business of a Holding Company
WoK Holding LLC
9/5/12
The business of a Holding Company
Protiviti Member Firm Qatar LLC
10/5/12
Professional Services (Consulting)
MasterCard Qatar LLC
21/06/2012
The business Activities of Management Offices
52 Champs Elysees Holding LLC
25/06/2012
The business of a Holding Company
Lifecare International (Qatar) LLC
30/07/2012
Intended- Regulated Activities
Allianz Worldwide Care Limited
13/08/2012
Regulated Activities
NEXtCARE Lebanon SAL, QFC Branch
15/08/2012
Professional Services (Third Party (re)insurance administration)
QIC Capital LLC
11/9/12
The business of a Holding Company
Zurich Insurance Company Ltd. QFC Branch
8/10/12
Regulated Activities
Asset Management
5
Europe
18
Banks
19
Asia Pacific
7
Insurance
14
North America
9
Insurance Intermediaries
9
Middle East
18
InvestmentBank
15
Regualted others
2
Non-regulated
57
49
Source QFC annual review 2011
QAMC will co-invest $250 million in BNRIís current and future portfolio companies. BNRI, a division of Barclays Bank PLC is a global private equity business focussed on natural resource investment opportunities. The BNRI office in the region will be located within the QFC. Events QFC has been successfully attracting global financial professionals to the country through international conferences and summits. In 2012, the QFC sponsored the 6th annual MultaQa Qatar Conference. The conference has established itself as the leading regional insurance, reinsurance and risk management event and has drawn more than 400 senior delegates from around the world. Other events include the first meeting of the GCC branch of the International Fiscal Association (a body of tax experts) and first Bloomberg Doha Financial Summit. The Bloomberg conference brought together professionals in the asset management industry to share views on issues facing the industry in
economy
QFC lisenced active firms by region
the GCC region and globally and to deepen understanding of the role of Qatar as an international financial centre for fund management.It attracted more than 350 delegates from Asia, Europe, the US and the Middle East. The IFA meeting shed light on issues related to taxation in the region. A number of research initiatives like the Insurance Barometer, Business Confidence Index and the MENA Asset Management Survey are sponsored regularly by the QFC to gauge the business confidence and growth prospects for the region in specific sectors such as insurance, reinsurance and asset management. Recognising the efforts made, QFC for the second year in a row, received the Best Financial Centre in the Middle Eastî Award given by the Global Investor magazine, a leading business publication highly regarded in the global asset management community. In 2012, Shashank Srivastava, formerly Acting CEO of the QFC Authority, took over as CEO and Board Member of the QFC Authority. He has an exciting and challenging task ahead in fulfilling the QFC’s mandate
PROGRESS 2012-2013
QFC lisenced active firms by type
economy
Home companies seeing growth
Qatari Companies are playing a key role in fulfilling the National Vision 2030 by diversifying their product and geographical base and adopting sustainable technologies. Expecting growth in the next decade, both from within and abroad, a number of companies are IN expansion mode; investing heavily in assets and striking strategic partnerships.
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50
Q
atar is creating unprecedented capacity in sectors such as petrochemicals that will transform it into a global producer. Qatari companies are tapping into the growth potential of the region. 2012 in particular witnessed some landmark developments in the field of sustainable growth by giving impetus to solar technologies. We take a look at the developments in some home-grown companies. Industries Qatar Industries Qatar’s (IQ’s) operations range from the metal industry to petrochemicals, and its products are sold in markets as diverse as Australia, India and the United States. IQ currently consists of four companies: Qatar Petrochemical Company (QAPCO, Qatar Feriliser Company (QAFCO), Qatar Steel and Fereej Real Estate. QAPCO marked a key milestone in 2012 when it opened its QR2.3 billion LDPE3 petrochemical facility. The new facility will produce more prime-high-pressure-grade LDPE than the company’s existing facilities, positioning it as a global leader in LDPE production. Globally, the production base is shifting from North American and European countries to the Middle East. Given
the huge capacities, Qatar could emerge as a key player in the industry. Currently, QAPCO’s manufacturing facilities consist of an 800 KTPA (kilo tonne per annum) ethylene plant, a 70 KTPA sulfur processing facility, and two pre-existing LDPE plants with a capacity of 400,000 metric tonnes per annum (MTPA). 4500 industrial customers are currently being served by QAPCO’s global marketing network in 145 countries. According to a report generated by the Gulf Petrochemicals and Chemicals Association (GPCA) and KPMG, the Middle East’s share in global petrochemical production will raise from 16% in 2011 to 20% in 2015. China, India, Brazil and Southeast Asia are other countries outside the Middle East with massive expansion plans and are also the fastest-growing consumer markets for QAPCO’s products. In early 2012, QAPCO announced a mammoth QR20 billion project to create additional capacities for its existing product lines (LDPE and LLDPE) and for the new products introduced. The project is slated for completion in 2018. QAFCO is the largest ammonia and urea producer in the world. The company has benefited from firming product prices, an expanding export market, competitive feedstock pricing and additional revenues from new products and fresh production capacities. QAFCO has expanded into value-added products like
Qatar Electricity and Water Company Qatar Electricity and Water Company (QEWC) is a generating company responsible for meeting the water and electricity needs of the country. It manages power generation and water desalination stations and sells its products to the Qatar General Electricity and Water Corporation (Kahraama) on the terms and conditions agreed between the parties in Power and Water Purchase Agreements. The company has been expanding its generation capacities continuously over the last two decades to meet growing demand in the country. Apart from owning and operating power and desalination plants, QEWC is also a major stakeholder in all the independent power and water producers in Qatar. According to Commercial Bank Capital, Qatar’s total planned investment in power is around $9 billion (QR32.7 billion) and in the water
Woqod Qatar Fuel Company, Woqod, is a downstream oil marketing company that distributes all fuels within Qatar including diesel, gasoline and aviation fuel through a fleet of more than 150 road tankers. The company trades in ship-to-ship bunkering, bitumen importation and distribution, lubricants and modern service stations, and is the sole distributor of LPG in Qatar. Woqod, like most Qatari companies, is in expansion mode and is currently involved in the implementation of more than 40 projects. Total assets for the nine months ended September 2012 were 19% higher, at QR8.3 billion, than for the same period in the previous year. It has embarked on a number of projects to cater for the increasing demand. These include opening new service stations across the country, a project to supply jet fuel through a 16-inch pipeline, developing and modernising additional vehicle inspection centres and opening new petrol stations. Expanding its service station network across the country, the company opened its 18th service station in November 2012. Two service stations are under construction and 11 more are planned for the future. On the pipeline expansion projects, the Gulf Times reported that the first phase of the 42 km, 18-inch pipeline that will pump petroleum products from Mesaieed to Doha Depot has been completed. The plan includes four stations for diesel fuelling and two each for jet fuelling, petrol fuelling and bitumen fuelling. Another Woqod project, to supply jet
economy
Mawashi The Qatar Meat and Livestock Company (Mawashi) is playing a key role in ensuring Qatar’s food security. The livestock company has been investing in farms and slaughterhouses abroad in Australia and Sudan to ensure a steady supply of meat for consumption in Qatar. It also plans to invest in value-added manufacturing chains and renewable energy industry processes. In 2012, the company announced that it would be foraying into the poultry business as well. Currently, only 30% of the requirements of the Qatari market are met locally. Mawashi plans to meet the country’s entire requirement for chicken and other poultry products, including eggs, locally. Mawashi announced three new projects in Sudan: a fodder project with a land area of about 42 million square metres and total production of up to 100 tonnes per year of green and dry fodder; the Al-Baraka Poultry Project on an area of 8.4 million square metres with a total production capacity of up to 12 million chickens in four years; and an international slaughterhouse on an area of 21 million square metres. It is planning to acquire slaughterhouses in Australia, Sudan, Pakistan and India to source livestock. Initially the focus will be on procuring red and white meat and later it will move into fish. As a result of a partnership signed last year with Williard, a leading supplier of Australian sheep, the first stock of Australian sheep was received in the UAE.
sector $6.9 billion (QR25.1 billion). In a key development, the company has teamed up with Qatar Solar Technologies (QSTec) to explore the possibilities of developing power generation using solar technology in the country. The latest mega-generation project, Ras Girtas Power Company, is in the final stages of completion. Ras Girtas has a power generation capacity of 2,730 MW and water desalination capacity of 63 million imperial gallons per day (MIGD). QEWC owns 45% of Ras Girtas, which is among the largest projects currently being implemented and will contribute close to 43% additional electricity to the Qatar grid. On completion of the projects in progress, QEWC will generate more than 60% of the total power generated in the state, and its water desalination capacity is expected to reach more than 70% of Qatar’s total water desalination capacity. The company is also expanding abroad by investing in electricity and water projects outside Qatar. It is teaming up with the National Thermal Power Corporation of India (NTPC) to establish a power plant in India. Other foreign projects being pursued are a power plant in Al Nasriyah in Syria, a power station in Seoul, South Korea with SK E&S Company, and a power station in Sur, Oman in consortium with Marubeni, Chubu and Bahwan Engineering Company of Oman. The current power generation capacity in Qatar is in excess of the requirements of the local market, and the GCC power grid project enhances the opportunity to sell excess electricity to other members of the GCC.
51 PROGRESS 2012-2013
melamine and sulphur-coated urea through Qatar Melamine Company, a 60% subsidiary. Strategically, it is aiming to maximise its granular urea production as against prilled urea. QAFCO is the main supplier of urea to Australia and South Africa and the second-biggest supplier to the US. The other potential upcoming markets are Brazil, Argentina and Sri Lanka. The company made significant progress in the American, Asian and Oceania region in 2011 and could further strengthen its position in these markets. Its Train 5 has started production and is running up to 80% capacity, and Train 6 was also launched later in 2012. Qatar Steel caters for the increasing demands of the construction sector and is the only steel manufacturer in Qatar.
economy
fuel (A1) through a 16-inch pipeline, is also on. The project links the petroleum refinery to the New Doha International Airport, and the current 12-inch pipeline is connected to the new 16inch pipeline. Expanding geographically, Woqod Lubricants signed up with Oman to distribute its brand of lubricants in 2012. With the latest signing, Woqod Lubricants’ complete range of synthetic, semi-synthetic, mineral petrol and diesel engines ancillaries are now present in six countries i.e UAE, Oman, Kuwait, Qatar, Jordan and Iraq. The aim is to make Woqod lubricants available in all GCC countries and Levant countries including Saudi Arabia, Bahrain and Lebanon.
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Nakilat Nakilat, Qatar’s premier gas transporter, is playing a crucial role in developing Qatar’s maritime sector. Through its group companies, Nakilat Damen Shipyards Qatar (NDSQ) and Nakilat Keppel Offshore Marine (N-KOM), Qatar has expanded the range of marine services offered in the country to include shipbuilding, repair and maintenance capabilities. N-KOM carries out repair and fabrication for ships and offand onshore structures, while NDSQ builds ships. The vessels transport LNG produced from Qatar’s North Field across the world. Nakilat is also responsible for developing the Erhama Bin Jaber Al Jalahma Shipyard, a world-class shipbuilding and ship repair facility in the Port of Ras Laffan. The Nakilat fleet consists of 25 wholly-owned and 29 jointly-owned LNG carriers’ and four jointly-owned LPG ships. With a carrying capacity of over 8.5 million cubic metres of LNG cargo, Nakilat is the largest LNG shipping company in the world. Together, Nakilat’s fleet of 54 LNG vessels represents a total investment of approximately US $11 billion. In 2012, Nakilat took over responsibility for the management and operations of its four VLGCs (Very Large Gas Carriers), adding in-house ship management and operations to the spectrum of marine services offered by the company. NSDQ also launched its first project, a 6,500-tonne Load out/Recovery(LOR) barge made entirely in Qatar. The company will use it to launch vessels built at Erhama Bin Jaber Al Jalahma Shipyard. NDSQ is currently constructing 19 more workboats in the shipyard. Qatar National Cement Company In the run-up to the construction boom, Qatar National Cement Company (QNCC), the country’s largest cement manufacturer, has announced that it will shore up capacities to meet burgeoning demand. QNCC is a major producer of ordinary portland cement, sulphate resistant cement, hydrated lime, calcined lime and washed sand in Qatar. It is at present capable of producing 4.4 million tons per annum (mtpa), 70% of the country’s total capacity of 6.2 mtpa. The company has announced that it will increase capacity by 0.93 mtpa to 5.36 mtpa. Geographically, the company’s entire business operation is concentrated in Qatar. According to a report by Commercialbank Capital, cement consumption in Qatar will grow at a compound annual growth rate
(CAGR) of 12% up to 2015, peaking in 2013 and 2014. The report also mentioned that cement prices in Qatar have been stable as they are controlled by the government. Prices elsewhere in the GCC have been volatile. Qatar is the third-largest cement market in the GCC in terms of both consumption and production capacity. Historically, cement production in Qatar was below consumption and the excess demand was met by imports from Saudi Arabia. QNCC has entered into a contract with Kahramaa to supply calcium carbonate for 25 years. Calcium carbonate is used in water treatment operations. The company installed a new unit with a production capacity of 250 tonnes of calcium carbonate a day in order to meet the demand from Kahramaa. QNCC started trial operations at its Umm-Bab-based QR22-million calcium carbonate plant in late 2011. It also announced a special mill for grinding slag, which is used in the production of blended cement, besides other applications. As a major indigenous producer of cement, the company plays a significant role in building the country. Qatar Industrial Manufacturing Company QIMC is Qatar’s leading manufacturing company in the SME sector and has stakes in 13 operational projects in a diverse range of industrial ventures in Qatar and overseas. It operates in sectors such as chemicals, petrochemicals, construction materials and food processing. The company was set up with a vision of promoting small and medium-sized industrial projects in Qatar. The subsidiaries of QIMC are Qatar Metals Coating Company, National Paper Industries Company, Qatar Sand Treatment Plant, Qatar Nitrogen Company, Qatar Paving Stones, National Food Company and Qatar Acids Company. Its business associates are Qatar Jet Fuel Company, Qatar Saudi Gypsum Industries Company, Qatar Clay Bricks Company, Qatar Plastic Products Company, Gulf Formaldehyde Company and Qatar Tunisian Food Company. Besides its portfolio of fully-owned business units, QIMC has also forged relationships with some leading companies within and outside Qatar and operates in other GCC countries such as Saudi Arabia, Bahrain and Oman. It is currently studying the economic feasibility of a number of other projects in collaboration with local and foreign interested parties. Last year, the company acquired an additional 5%, taking its total stake in Gulf Formaldehyde Company (GFC) to 20 %, a fast-growing company whose growth is directly related to the large-scale expansions being pursued by QAFCO. Qatar Acids Company is undergoing a four fold capacity expansion to 43,000 tonnes of acids per year from the present 10,000 tonnes to meet the growing needs of the oil and petrochemical sectors. Another venture, KLJ Organic, is expected to startcommercial production of chlorinated paraffin wax, hydrochloric acid and caustic soda by the middle of 2014. The plant was set up with an investment of QR300 million. The project is the first of its kind in Qatar and the region and most of the production is for export markets in the region and overseas
PROGRESS 2012-2013
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infrastructure PROGRESS 2012-2013
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Kahramaa Goes Solar IN 2012, Kahramaa took a step TOWARDS includING alternative sources of power for Qatar WHEN IT indicated that it is keen to include both solar and nuclear power to meet the country’s future requirements AND signed a Memorandum of Understanding (MoU) with Qatar Solar Technologies (QSTec) for the future distribution of solar power in Qatar.
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ahramaa is working on demand-side management, inclusion of alternative energy sources and introduction of new technologies to meet the country’s soaring power and water requirements. President of Kahramaa, HE Eng. Essa Hilal AlKuwari said: “This will be one of the considered tools to ensure sustainability of the state’s energy and water resources and help us to improve our energy and water conservation plan.” In an attempt to promote clean energy sources, Qatar is also considering the possibility of developing nuclear power. Kahramaa had disclosed to the Gulf Times that they reached an agreement with a major consultancy firm on the feasibility of developing nuclear power stations in the country. Conservation efforts Qatar’s water consumption is forecast to reach 361 million gallons per day by 2020, according to Kahramaa. Recognising the need to conserve energy and water, it launched ‘Tarsheed,’ a
five-year national campaign for the conservation and efficient use of water and electricity. Launching the initiative, Al-Kuwari said: “Tarsheed is a noble campaign that includes a combination of ad campaigns, awareness programmes, direct activities, and outdoor initiatives. We will coordinate with several cultural and governmental forums and the public to generate a meaningful response and reduce unnecessary pressure on Kahramaa networks.” The target is to reduce the per capita consumption of electricity in Qatar by 20% and of water by 15% in the next five years. In addition to an awareness campaign, Kahramaa is also taking various steps to achieve optimum energy and water efficiency. It has introduced energy conservation measures for all new buildings in Qatar. Building permits will be granted only if they adhere to the standards set by Kahramaa. Its water conservation efforts include upgrading the supply network and minimising leakages by using the latest technology, installing meters and using treated sewage effluent for non-potable purposes wherever possible. The treated wastewater contribution to the water
“Tarsheed is a noble campaign that includes a combination of ad campaigns, awareness programmes, direct activities, and outdoor initiatives. We will coordinate with several cultural and governmental forums and the public to generate a meaningful response and reduce unnecessary pressure on Kahramaa .”
New projects awarded New contracts worth QR4 billion were awarded during the year. They included QR3.65 billion for Phase 10 of Kahraama’s electricity transmission projects, QR300 million for water projects and QR64 million for a pilot project of smart and advanced metering. Among the contracts awarded, three were for power stations,
four for ground lines, and one each for overhead lines, for communications and remote control and for consulting firms. Some contracts under phase 8 and 9 given out earlier are under execution. Contracts for Phase 11 are expected to roll out in 201213 before the expansion programme enters the next big stage. Kahramaa has inaugurated new key projects totalling more than QR2 billion to meet the increasing demand for water in the country. Qatar is undertaking a massive project to increase water storage capacity to 3,500 million gallons. The project is expected
Kahramaa Planned investment in water projects Source: Kahramaa (in million QR) 2011
2010
4,780
2012
7,700
2013
10,955
2014
14.385
2015
18,025
19,916
55 PROGRESS 2012-2013
supply is expected to rise from 0.05 billion cubic metres per year in 2011 to 0.065 billion cubic meters per year by 2015. The corporation is adopting advanced technologies such as a Supervisory Control and Data Acquisition System to control and monitor water systems, installing advanced metering systems and replacing old distribution mains in the network. All power plants are built to international standards using sophisticated technology to ensure pollution remains low. The utilities company is exploring opportunities in clean water technologies to reduce the cost of desalination. The Gulf Times reported that Kahramaa is in the process of setting up a water desalination plant to be operated by solar energy on the principle of reverse osmosis.
infrastructure
HE Eng. Essa Hilal Al-Kuwari President, Kahramaa.
water transmission and distribution network expansion Source : Kahramaa (Planned investment in pipelaying) (Length in Km) 2010 1816 2011 3487 2012 4103 2013 4247 2014 4379 2015 4486
infrastructure
Kahramaa Planned water storage capacity Source: Kahramaa (volume in Million Imperial Gallons capacity)
380
1141
1902
2013
2014
2015
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to be implemented in 52 months. Orders worth QR300 million including a contract for consulting services for project design and supervision of large reservoirs were given during the year. Planned Projects and Investments Kahramaa has earmarked about QR31 billion for implementing new projects in the water sector in the next five years. The investments include a QR11 billion reservoir project that can hold seven day’s requirement of fresh water as a backup for the desalinated water supply. The project will be executed in two phases which are expected to be completed in 2016 and 2020. The water network replacement project has replaced old networks with new pressure-resistant pipes and is nearing completion. An additional 442 million imperial gallons (MIG) of secondary reservoirs and 1,902 MIGs of mega reservoirs capacity is expected to come online by the end of 2015. This will include a network of reservoirs connected by a 183-kilometre, 2.5-metrewide pipeline linking the Ras Laffan desalination facility in Qatar’s north and the Ras Abu Fontas plant in the south. Investments are also being made in new water pumping stations across the country and seawater desalination plants using new technologies. A total of QR70 billion is expected to be invested in the electricity and water segment in the next decade
About Kahramaa Qatar General Electricity and Water Corporation (Kahramaa) owns and operates the transmission and distribution system for water and electricity in Qatar. Kahramaa was established in 2000 and is wholly owned by the government. Since its inception in 2000, has bought, distributed and sold electricity and water through power and water purchase agreements. It provides technical and corporate support for generation and desalination ventures and is responsible for planning and executing projects for the development of electricity and water transmission and distribution networks. It also acts as a regulatory body, laying out regulations, standards and codes of practice for electricity and water supply to buildings and facilities in Qatar. Kahramaa operates as an independent corporation on a commercial basis with a total capital of QR8 billion.
Ashghal aims high Public Works Authority (Ashghal) is expected to implement, deliver and operate about QR100 billion ($27.465 billion) worth of projects in the coming five to seven years.
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he main functions of Ashghal include supervising the design, construction and management of roads and sewerage and drainage systems and infrastructure associated with them and public buildings. Within its work to implement and manage the infrastructure and government building projects in line with international quality standards, Public Works Authority prepared, launched and commissioned its five-year strategy (2011-2016) which outlines the mission, objectives and development plans of the authority as a practical interpretation of Qatar National Vision 2030, taking into consideration all the country’s requirements throughout the term of the strategy. Accordingly, several first class international consultancy firms specialising in project management and project implementation supervision were contracted. Relevant contracts were awarded to stra-
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Achievements in the field of sewerage networks The authority implemented several major projects in the field of sewerage networks, pumping stations, surface and underground water drainage projects last year. Examples of these projects include Al Azizia sewerage network, treated water pumping station and Doha North main pumping lines, the main pumping line to Al Rakiyah farm, the main pumping station No 70, Doha North main pumping lines (Umm Slal), the main sewerage network of the station, surface and underground water drainage projects in Ain Khalid area. Work is nearing completion at present in Al Sailiya treatment plant, Doha North treatment plant, sewerage network in Misaimeer area, the second phase of Ain Khalid sewerage network, Al Khor sewerage network alongside other vital projects.
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SPECIAL CORPORATE FEATURE
construction projects worth about QR900 million ($247.124 million). As part of the plan of Ashghal to build an efficient road network that can support sustainable development in the country, several development and construction projects were completed. These include, for instance, Al Shamal road and the improvement and development of the streets in all municipalities in Qatar. Road improvement and development works are underway in many locations. In addition, the implementation of new road projects including Al Waseel road, Doha Express road, the eastern industrial estate road, the eastern Dukhan road, and the roads connected to Al Shamal road has started alongside with improvement works at some roads at the intersections and roundabouts in various areas in Doha, and the works to improve the traffic flow in various locations in Qatar.
tegic highly efficient partners to implement several major projects in accordance with the highest international quality standards and best professional practices to keep pace with the march of the comprehensive development plans adopted by the country. During 2011, Ashghal signed 110 contracts worth in total over QR9 billion ($2.47165 billion) for the implementation of the main public works projects. The Qatari companies’ share in this budget was QR3 billion ($823.891 million). Some of these projects include highway and internal road projects worth QR6.7 billion ($1.84005 billion); sewerage networks projects worth QR1.5 billion ($411.942 million); and building
Achievements in the field of buildings In the field of the construction of educational buildings, the authority completed a number of major projects including 12 new school buildings in Doha and some villages, a number of supplementary buildings and facilities at existing schools in various areas. Work is underway in the construction of three new school buildings and contract awarding procedures to construct 15 school buildings and 21 kindergartens in Doha and some villages. In the field of health-care buildings, the authority completed the construction of Al Wakra hospital and new sections and facilities at Hamad Medical City hospitals and Al Khor hospital. Work is in progress in the construction of three hospital buildings at Hamad Medical City. Al Firkiya beach development project, Umm Baab and Ras Brooq jetties, Al Khor park, the Islamic Center in Ain Khalid and several government and public buildings in a number of locations were completed last year. Work is ongoing in Al Ruwais harbor development project, the renovation of Qatar radio and TV complex, the establishment of Misaimeer graveyard and a number of mosques and Islamic centres
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NDIA OPENING SOON PROGRESS 2012-2013
60
The much-awaited New Doha International Airport (NDIA) is now expected to open in april 2013. The airport, originally scheduled to open in December 2012, was delayed as a key contractor was dropped from the project.
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n an interview with the Moodie Report, Akbar Al-Baker, a member of the steering committee for the airport’s development and Chief Executive of Qatar Airways, said: “Some NDIA facilities will open around the end of [2012], including cargo, the VIP Terminal and the maintenance base for Qatar Airways. We have already started the operational readiness programme – the ORAT (Operational Readiness and Airport Transfer).” The Gulf Times has reported that as many as 47,000 people – labourers and engineers – are working at the site. Both runways have been completed, as has the dredging work, with 60% of the airport built on reclaimed land. The NDIA is behind schedule and the cost of the project now stands at $17.5 billion (QR64 billion) – up from the original $14.5 billion (QR53 billion) estimate. In 2012, a $2 billion (QR7.2 billion) investment was announced in addition to the budgeted $15.5 billion (QR56.5 billion) to accommodate Qatar Airways’ aggressive growth plans. Infrastructure Phase 1 of the project will provide the airport with a passenger capacity of 28 million per year. The capacity is expected to double by 2018, when the project is expected to be fully operational. Doha Airport is currently handling 14.9 million passengers a year. The NDIA is also developing its air cargo terminal, with an initial handling capacity of 1.4 million tonnes on completion
of the first phase. This figure is expected to grow to two million tonnes at the end of the second phase, making it one of the largest cargo terminals in the world. It will have 11 hardstand aircraft parking bays. In the final phase, expected to be constructed post-2015, another 24 contact gates will be added to bring the total number to 65. Six of them will cater for A380s, the largest passenger aircraft ever built. The terminal building will be further extended to 900,000 square metres to handle the additional traffic in the second phase. The new airport includes two runways, of 4,850 metres and 4,250 metres in length, designed specifically to accommodate the new Airbus A380-800 Super Jumbo. It will have 100 aerobridges and 42 gates. Situated approximately four kilometres east of the existing airport, the new facility will be the world’s first airport to accommodate unrestricted operations by all commercial aircraft, including the A380. At 350,000 sq m, the main terminal will be the largest building in Doha. The check-in and duty-free shopping areas will be 12 times larger than those at the current airport. Features NDIA will incorporate a total of 41 wide-body aircraft contactgates, together with over 40,000 square metres of space devoted to retail facilities, passenger lounges and multi-story shortterm and long-term parking. Speaking of the commercial offer, including retail and food and beverage, Al-Baker said that the
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“Some NDIA facilities will open around the end of [2012], including cargo, the VIP Terminal and the maintenance base for Qatar Airways. ” Akbar Al-Baker Chief Executive of Qatar Airways
company would reach out across price points and passenger profiles in order to engage all consumers and maximise revenue. “We are multi-level and multi-ethnic and we will reach out to people who have low purchasing power and high purchasing power. As a business, we want to provide for everybody,” he said. Other features include a new Emiri Royal Terminal complex for VIP flights with additional hardstands, cargo terminal buildings, aircraft hangars and associated airline and airport ancillary features. The complex will include an airport hotel and a 100room transit hotel within the terminal for the convenience of transfer passengers, and more than 40,000 square metres of retail facilities and passenger lounges. The aircraft maintenance centre with a hangar can accommodate up to 13 aircrafts of different types at any one time. The new terminal is being built by the Sky Oryx consortium of Japan’s Taisei Corporation and Turkey’s TAV. The terminal extension is being built by a joint venture of Belgium’s Six Construct and the local Midmac Contracting. Aviation hub Qatar is already seeing a steady increase in passenger traffic
and the existing airport is incapable of supporting the rising traffic.The new airport – capable of handling three times the current traffic – is expected to take Qatar Airways to a new pinnacle of success. According to a Commercial Bank Construction Sector report, passenger traffic in the GCC has grew at a compound annual growth rate (CAGR) of around 10% between 2002 and 2010, significantly higher than global traffic. According to the International Air Transport Association (IATA), the Middle East is one of the fastest-growing markets in the world and is expected to grow annually at around 9% until 2014. The Middle East is also seeing a surge in cargo growth. According to IATA statistics, Middle Eastern airlines recorded double-digit cargo growth during February-August 2012. Cargo demand in other regions slid 14% year on year. In December 2011, Al-Baker was unanimously nominated to serve on the board of governors of the International Air Transport Association, which represents over 90% of the world’s air transport. This substantiates Qatar Airways’ image in the industry and the country’s rising profile among global aviation circles. The massive infrastructure overhaul along with Qatar Airways’ aggressive fleet expansion, is expected to help Qatar become a hub for major connections across the globe
Qatar Rail Network
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iven the massive scale of the project, the World Cup 2022 deadline is a challenge that Qatar will have to overcome. To shorten the decisionmaking process, the Qatar Railways Company (QRail) has been restructured. A “Railways Steering Committee”, under the chairmanship of the Qatari Prime Minister, was established for the organisational development and coordination of the entire project. Qatar Railways took direct control of the project from Qatar Railways Development Company (QRDC), a $25 billion (QR91 billion) joint venture between Qatari Diar’s QRail (51%) and Germany’s Deutsche Bahn (49%), formed in 2009 to design and build Doha’s metro and suburban rail network. The tasks originally assigned to QRDC will now be handled directly by Qatar Railways. DB International will be involved in providing the ongoing engineering services, technical consulting and training of the staff. The experts from DB International, who have been working on site since 2008 on the development of the planned transport network, will be seconded to Qatar Railways. How is it planned? The integrated Qatar Rail Network consists of a high-speed railway, a freight railway, a high speed commuter railway, four metro lines in Greater Doha and two light rail systems. The long-distance lines will include a 180km high-speed line to Bahrain, a 100-km passenger transport line to Saudi Arabia and
a 325-km freight network. The Doha Metro will connect the main centres of the city, while the freight line will link the industrial city of Ras Laffan with the New Doha Port at Mesaieed in the southeast. Doha Metro The first phase of the metro project will see the red, green and gold lines become operational. These lines will have 47 stations including Msheireb and Education City stations. It will be 30% underground – 22km of tunnel with 15 underground stations. The first phase of the project will focus on the heavily populated coastal stretch of the country, linking Al Khor in the north down to Al Wakra and Mesaieed in the south. The red line will carry the majority of the national traffic and connect the key stadiums to be used during the 2022 World Cup. The Doha Metro is expected to be operational by the fourth quarter of 2019. The second phase will commence post-2022 and is expected to be completed by 2026. Work entered a new phase in October 2012 marked by the ground-breaking ceremony for a station at Msheireb. The Msheireb interchange station will serve as the hub for the metro’s operations. Contracts for the first phase of the project – the enabling and pre-construction phase – were awarded in August 2012. Four tunnelling packages worth QR7-10.5 billion each for the first phase were awarded. The initial tenders for the Doha Metro cover two running tunnels and two underground stations at Msheireb and Education City. Build contracts are ex-
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The $35 billion (QR127 billion) Qatar Railway Project passed a significant milestone in 2012 as work started on the Msheireb station, the central station of the Doha Metro, in October. Five contracts for the initial phase of the Doha Metro have been awarded.
infrastructure
A challenging task
infrastructure
Qatar Rail Project
PROGRESS 2012-2013
64
Project
Award date
Cost (QR million)
NDIA - Doha International Airport: Passenger Rail Station Box
Q1 2010
437
QRDC - Qatar Integrated Rail Project
Q2 2012
75,273
QRDC - Qatar Integrated Rail Project:Automated people mover in West Bay
Q2 2012
8,009
QRDC - Qatar Integrated Rail Project: Doha Metro: Green and Yellow Line
Q2 2012
7,281
QRDC - Qatar Integrated Rail Project: Doha Metro: Lusail Light Rail Network
Q3 2012
4,216
QRDC - Qatar Integrated Rail Project: Doha Metro: Blue Line
Q2 2012
3,640
QRDC - Qatar Integrated Rail Project: Doha Metro: Red Line
Q2 2012
3,640
QDREIC - New Doha Airport to New Doha Port Railway
Q4 2014
728
Project
Completion
Cost (QR billion)
Doha Metro
2020
11
Lusail Light Rail
2016
6.55
QatarRailway
2020
135
Source: Commercial Bank Capital Construction Report March 2012
pected to be awarded in 2013. The entire 216-km metro line will have 95-km of bored tunnels and 91-km elevated above street level. Tenders are to be issued for the elevated lines by the end of 2012 and tenders for underground lines and major stations are expected to be awarded during the first quarter of 2013. Track work and systems contracts are expected to be awarded in the first quarter of 2014 and rolling stock tenders awarded during the second quarter of 2015. The Gulf Times reported recently that tenders have been issued for selecting the logistics coordinator for the metro network and selection will be made by the end of 2012. About 16 to 18 tunnel-boring machines have to be ordered that will take over a year to be delivered. The tunnelling will take three years and will be a challenge, as the terrain in Qatar is not suitable for tunnelling. The elevated sections are expected to be executed more quickly. Light rail project The four-line light rail transit network, being developed by Qatar Railways, will total 28.8 km – 25% of which will be underground. There will be connections with the planned national rail network at two stations on Al Khor Highway. The Qatar Railways Company and Qatari Diar signed a fiveyear, QR155-million contract with Parsons International and AECOM in April 2012 to manage the construction of the new Lusail Light Rail Transit system. Civil works contracts have been awarded for construction of the light rail network to serve the
Lusail City project. Design began in August 2007 with the QDVC 51:49 joint venture of Qatari Diar and Vinci Construction Grands Project starting earthworks and excavations for cut-and-cover tunnels in March 2009. In August 2012, QDVC announced a further 38-month design-build contract worth 374 million euros (QR1.73 billion) covering the eight underground stations, a viaduct over the motorway and preliminary works for the depot. Rolling stock and systems contracts will form the final phase of the project, which is scheduled for completion in 2016. The West Bay People Mover project is under review as the viability of constructing an underground tunnel network is being questioned. All tenders on the West Bay project have been cancelled until Qatar Rail concludes a feasibility study into its options. The West Bay system was set to feed into the Doha Metro and was originally due for completion in 2018. The original plan comprised a 10-km dual track, single-bore tunnel under the commercial area north of Doha Bay and 19 underground stations including two multimodal flagship stations at Convention Centre and Barwa Financial District. Long distance passenger line A long distance passenger line and a dedicated freight line totalling 490 km will have nine stations and six terminals and will be connected to the GCC rail network. The detailed designs have to be announced but the project is expected to be completed by 2018-19
A
ccording to a report titled “Qatar Economic Outlook 2013”, released by the General Secretariat for Development Planning (GSDP), the construction sector is expected to grow at 10% during 2013. The report also mentions that “real estate data for 2011 suggests excess supply continued across major market segments. Rents for office, retail and industrial space fell from end-2010, but with evidence of a rebound in retail rentals in the second half of the year. For the full year, the rental component of the consumer price index, which captures rental costs in the residential market, declined by 4.9%. Despite some moderate growth in the population during 2011, an overhang of residential units remained. In response, developers slowed some real estate projects, deferring release of property on to the market.” Some major infrastructure projects in the road and rail segment were awarded during 2012. Further traction is expected in the year ahead. This could attract more international companies and more people moving into the country, which in turn is expected to give a boost to the real estate sector. Progress details some of the key real estate projects in Qatar.
The green city Msheireb in Arabic means “a place to drink water”. Built on the core principle of sustainability, Msheireb Downtown Doha, the landmark project promoted by Msheireb Properties, is one of Qatar’s iconic projects. Msheireb Properties is a subsidiary of Qatar Foundation and was set up in April 2007. Msheireb won the award for the Best Mixed Use Project in the sustainability category at the first Cityscape Qatar 2012 for its commitment to sustainability in terms of design, development and construction, and the innovative use of new materials, products and construction methods delivering high levels of energy efficiency. Msheireb Properties partnered with the best in the industry to create an architecture that truly brings Qatari history to life and yet provides a modern eco-friendly living experience. Right from the design and conception stage to construction and materials used, the project uses the latest in eco-friendly technologies.” Msheireb Downtown Doha aims to be sustainable in both its construction and its operation. That is why we are prioritising investments in the most advanced and environment-friendly building techniques,” said Mohammed Al-Marri, Chief Officer, Design and Delivery at Msheireb Properties.
infrastructure
The real estate sector remained subdued during 2012 with supply exceeding demand in some segments keeping prices and rents under check. However, THE outlook remains positive for the year ahead.
65 PROGRESS 2012-2013
A real change in Qatar
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Msheireb Downtown Doha aims to be sustainable in both its construction and its operation.
Sustainability is central to the Msheireb project, in terms of both the conservation of natural resources and the quality of its design. The entire project features sustainable design that consumes fewer resources, generates less waste, costs less to operate, and achieves a reduced carbon footprint. Preliminary calculations indicate that upon completion, expected energy and water reduction in the Msheireb Downtown Doha project will reduce carbon dioxide emissions by as much as 110,000 metric tons of CO2 per year compared with the carbon emissions of a conventional urban development of a similar size. That is equal to the annual greenhouse gas emissions of 18,277 passenger vehicles consuming 42,877,121 litres of gasoline. Usage of green concrete in the construction, re-use of wastewater and an organic garden with desert plants that will be irrigated using waste water are some of the key sustainability concepts used in the project. The plan is to have roughly 400 sqm of organic gardens both on rooftops and in public realms. The unique mixed-use development will consume fewer resources, generate less waste and operate in a more cost-efficient manner than a conventional development of similar size, owing to
its sustainable design. The construction work on Msheireb Downtown Doha began in 2010 and the development will be readied in five phases. The QR1.5 billion construction contract for the first phase of the project was awarded to a consortium between Hyundai Engineering and Construction Company and HBK Contracting Company. The first part of the project is scheduled to open in September 2013. Phase 1 of the project is under construction. Phases 2, 3 and 4 are in the design stage. The enabling work on Phase 1B and 1C is now completed, and building of foundations of Phase 1C is now progressing. Brookfield Multiplex Medgulf, a consortium of Brookfield Multiplex and Medgulf, was recently awarded the QR1.5 billion deal for the construction of all substructure and superstructure works involved in Phase 1C of the project. Aggressive expansion Qatari Diar, the real estate development and property investment arm of the country’s sovereign wealth fund, is aggressively pursuing international opportunities. Established in 2005, the mixed use development Lusail City was the company’s first proj-
infrastructure
Key projects
Project Value
Completion Date
Pearl Qatar
$5 Billion
Q3-13
Mshreib
$5.5 billion
Q4-17
Lusail mixed-use
$33 billion
2018
Urjuan mixed-use development
$10 billion
Q3-14
ect in Qatar. Arabian Business had recently reported that the first phase of the project had been completed and formal handover to owner-investors had begun. The company has now moved beyond Qatar’s borders and its real estate portfolio includes an eclectic mix of projects in Africa, Asia, Europe and America. Some high-profile European investments include the $906 million (QR3.3 billion) Athletes’ Village in London’s Olympic Park and the $1.5 billion (QR5.46 billion) redevelopment of London’s Chelsea Barracks, Qatari Diar’s largest residential development in Europe in terms of value. In the UK, it has invested in Grosvenor Waterside, an urban village and residential community. The company made a significant foray into the American mar-
ket with a $700 million (QR2.5 billion) deal to build a development in Washington DC and is pursuing more options in the country. Qatari Diar is also playing a vital role in resurrecting the Middle East following the Arab Spring. In 2011 the company announced projects worth $543 million (QR1.97 billion) in Egypt. This includes $464.3 million (QR1.7 billion) for the company’s “Nile Corniche” project in Cairo and a $79 million (QR288 million) coastal resort project in Sharm El Sheikh. Some other projects in the MENA region include mixed-use projects in Syria and Yemen and a resort in Morocco totalling $1.5 billion (QR5.46 billion). Recently, Qatari Diar together with Oman’s tourism ministry announced plans to develop three mixed-use develop-
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The Barwa Village located on the Wakrah road
ments in the sultanate. Reuters has reported that the company is interested in emerging-market opportunities though it did not specify any country or region. As of January 2012, Qatari Diar was capitalised at $4 billion (QR14.5 billion) and has more than 49 projects under development or planned in Qatar and in 29 countries around the world with a combined value of over $35 billion (QR127 billion). The Arabian Riviera Developed by United Development Company (UDC), the PearlQatar claims to offer the experience of Europe in Qatar. Also known as the Riviera Arabia, the Pearl-Qatar offers a luxurious lifestyle in the Arabian Gulf. Located on the coast of Doha’s glamorous West Bay, the settlement comprises ten distinct themed districts that include beach-front villas, elegant town homes, luxury apartments, exclusive penthouses, high-end retail and lavish hospitality, three world-class marinas and an impressive beachfront. Upon completion, approximately 19,000 residential dwellings will be in use on the island. Each district of The Pearl-Qatar will have its own distinctive architecture. The names of districts, features and attractions have been created with a mix of French, Italian, Spanish and Arabian roots. The Pearl-Qatar is the largest urban development project in Qatar, covering 985 acres. It is the first property in Qatar that can be owned by non-Qataris, both individual and corporate investors. Property owners in the Pearl-Qatar are entitled to apply for a residency visa upon the purchase of a property. This visa includes dependent children and is valid until the resale of the property. Complete residential towers, as well as individual
units, may be purchased for rental or resale. Residence permits are given regardless of the number or size of the properties owned. The business opportunities include retail, food and beverage, community facilities, schools and marinas. The project is expected to house approximately 41,000 residents along with guests and visitors at the five-star hotels and retail shops. The project operates Doha’s first and only water taxi service, equipped with a fleet of 22 foot boats, which are electrically propelled and hence, environment-friendly. Operated by Ronautica Middle East (RME), the shuttle service operates within the Porto Arabia precinct and will later this year expand to connect all parts of the island. The Pearl has initiated a number of initiatives towards sustainable living. The project’s green efforts include a reverse osmosis desalination plant, an innovative waste management system and, district cooling systems for air-conditioning, all technologies that consume less energy in the long run. An artificial reef is planned for development and hundreds of species of indigenous plants and trees are being planted. Monitoring programmes such as ecological surveys; seawater testing; and noise, dust and emissions monitoring are in place, ensuring a sustainable living environment. Barwa Barwa is a leading Qatari real estate company with business interests in real estate developments in Qatar, international real estate, business services, infrastructure services and financial services. Although the group’s main activities remain in Qatar,
as saying it was “looking to invest in the London property market before the end of the year”. No details on potential targets or how much it was willing to invest were given. Logistics Village Logistics Village offers one-stop logistics solutions for businesses. Promoted by Gulf Warehousing Company, the logistics hub is located 20 kilometres from the city’s centre on a site of about one million square metres. Located in the heart of the prime industrial belt, its proximity to transportation hubs and consumption centres makes it easily accessible. The Logistics Village is being built in three phases. The first two phases are operational and running to full capacity. The third phase is under construction and is expected to be operational by Q1 2013. The third phase is expected to add 105,000 sqm of warehousing; 100,000 sqm of container yard; 4,600 sqm of administrative blocks and 16,400 sqm of accommodation. The range of services offered include a multipurpose warehouse, car storage, container and open yards and an auction yard. The company has indicated that a fourth phase is at the design stage. It plans to add 100,000 sqm every year for the next five years. The hub serves the needs of a fast-growing economy and its services are much in demand. The upcoming capacities too are expected to be quickly absorbed. Being the only logistics hub in the country, business continues to grow at a fast pace. For the nine months ended September 2012, GWC registered a 31% increase in the net profit year on year, reflecting the additional revenues from the Logistics Village
infrastructure
Barwa has a wide array of investments and operations in 13 other countries regionally and internationally including the UK, Turkey, Egypt, France and Russia. Some of Barwa’s well-known projects include Barwa Al Doha;Barwa Al Sadd, a QR2.4 billion project; Barwa Commercial Avenue, a QR7 billion mixed-use development; Barwa Al Baraha, the largest workers’ accommodation in the Gulf; and Barwa City, a 1.35-million sqm development. The group recently launched its ambitious Lusail Golf Residential Development, estimated at QR18 billion. The project measures 3,659,736 sqm and features gardens, schools, mosques, a boutique hotel, a retail village, a health clinic, a golf course, golf club, tennis facilities, and low and medium density residential zones. Residential components will account for 31% of the development, and sports facilities and green areas the remaining 69%. Other local projects include, Barwa Village and Masaken Barwa. Barwa too, like many other Qatari companies has evinced interest in the London real estate market. The company recently announced its ownership of an office block in Cavendish Square in the West End of London through its UK based company, Cavendish Capital. Cavendish Square is considered to be one of the most desirable office addresses in London. The company has announced that it will sell assets valued at QR16 billion in Qatar and Egypt to reduce debt worth QR50.5 billion. The assets will be sold at book value and will not involve any profit or loss, a company statement said. Barwa Al Khor land in Qatar and the Barwa New Cairo project in Egypt will be included in the assets sold. Barwa’s deputy group chief executive was quoted by Reuters
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The Pearl-Qatar is the largest urban development project in Qatar, covering 985 acres.
Symbiotic Growth
infrastructure
Qatar Project Management (QPM) is one of the region’s premier project management companies and the first Qatari firm in the field. Its new Chief Executive Officer, Fahad Rashid Al-Kaabi, tells Progress Qatar about his thoughts on the company’s advances in 2012, and what is yet to come in 2013 and beyond.
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Fahad Rashid Al-Kaabi, QPM, CEO,
How would you describe 2012 with regard to the development and contribution that your sector has made to the economy of the country? QPM is recognised as the domestic market leader in project management. During the year, we have been involved in numerous ‘blue chip’ infrastructural and construction developments both within Qatar and, increasingly, in international projects. Domestically, our activity enhances the evolution of the State of Qatar and, internationally, shows that Qatar can ‘cut it’ on the world stage. We need to do our bit to cement the emerging reputation that this country is garnering a reputation as a place that means business, and a place to do business. What plans do you have for the coming year? We will continue to focus on project management services in the region and acquisition of new contracts and new business wherever the opportunities exist. The skill and dedication of our associates, and our unrivalled knowledge of the local market are our strengths. No one knows Qatar like we do.
What are the setbacks and achievements of the company/sector/industry this year? Setbacks have been scarce over the last 12 months. We have overcome obstacles by inspiration and application. Achievements are numerous. The company’s growing reputation as one with talented, hard-working employees has brought positive results in the last year. If we maintain our focus – which we will – we will continue to succeed. Which sectors should receive more direction and focus from the government and why so? QPM recognizes the efforts of the Government, and is fully committed to playing its part. We understand that the development of Qatar comes not only from the Government’s efforts, but also the efforts of companies – like our own – that operate within Qatar. We feel strongly that the most ambitious decisions are being made at the top level and we’re keen to remain part of the positives this country is undergoing. The Qatar National Vision 2030 and what QPM seeks to achieve are definitely symbiotic
A logistical dream
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The logistics field has become the glue that holds the country’s massive infrastructure projects together, becoming a QR20 billion industry on its own. It is estimated to grow to QR27 billion by 2016.
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he prominence of logistics will increase as Qatar pursues its ambition of becoming a global trading hub by positioning itself as an entry point for goods re-export globally. The FIFA World Cup and Qatar’s pursuits to diversify from the hydrocarbons sector also expand opportunities in the logistics sector. To meet this need, a government purpose-built logistics zone of 500,000 square metres is also in the planning stages. Ahead of the game and dwarfing all other efforts in this regard is Gulf Warehousing Company (GWC), a global integrated logistics provider and an award winning company with a track record of excellence in logistics and supply chain management. GWC’s Logistics Village Qatar (LVQ), a 1,000,000 square metre allpurpose logistics hub, is already operational and completing its original master plan design by April 2013. Further expansions are planned for 2014 and 2015 that will add to its current capabilities. It provides tailor-made platform for the specific needs of regional logistics players and large corporate houses offering modern storage facilities three to four times the capacity of conventional warehouses, allowing the clients to expand within the same premises. LVQ is a one-stop logistics solution offering multi-purpose and customisable warehousing, truck parking and maintenance, container depot, lay-
down area and auction yard, as well as administrative, recreational and accommodation facilities in one site. Only 15 km from the seaport, 18 km from the airport, and just 2 km from Qatar’s main industrial area, the village is strategically located. LVQ can support a variety of industries and the facility is prepared to shift focus from one growth industry to another, matching the needs of the country as a whole.The company’s fleet of over 700 vehicles gives it an edge in the local market. The fleet includes 60 vehicles that service the distribution sector and dry and reefer box-trucks that service over 500 retail outlets within Qatar. LVQ also anticipates the needs of small-to-medium enterprises (SMEs). Currently 90% of companies handle logistics in house. It is estimated that the third-party logistics segment will grow to 15% of total logistics operations by 2016. LVQ consolidates all warehousing and distribution needs for any industry vertical in one space allowing near-immediate operation as against the usual two to three year period. GWC has aligned itself with several local, regional and international powerhouses in both the private and public sector. By leveraging their global network and specialised logistics capabilities, GWC has successfully managed the logistics for large events such as the Arab Games 2011 and the Asian Cup 2011
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he sector has been boosted by large-scale projects such as the implementation of next-generation access networks with ultra-fast interconnectivity, and international submarine cables and satellite technology. The government has adopted much of this technology as more than 360 government services are available through the Hukoomi egovernment portal. Meanwhile, the telecoms sector in Qatar has been bolstered by the entry of a second mobile and fixed-line operator as well as the establishment of the Qatar Computer Emergency Response Team (Q-CERT) to identify cyber-threats to the country and the region. Qatar’s ICT growth is attributed to a burgeoning population with high purchasing power and an increasing interest in technology as well as an unparalleled construction boom driven by high liquidity. Qatar’s ICT development has been supported by large-scale public and private investment in the sector, which has resulted in the country leading the region in many ICT indicators including: Fixed and broadband segments continue to grow with 85% of households now connected through a fixed line. Broadband penetration in Qatar has also increased, from 41% of households in 2008 to 70% in 2010. Qatar has one of the highest mobile penetration rates in the world as mobile subscriptions in Qatar outnumber the population by 40%.
89% of the households in Qatar are now equipped with a computer, while 84% have an Internet connection. The software market is growing faster than in any other country in the GCC. Qatar’s ICT sector is dynamic and between 2003 and 2008 it contributed approximately 5% of the country’s GDP. The substantial expansion of Qatar’s ICT sector has resulted in the implementation of advanced technologies much earlier than in neighbouring GCC countries. ICT projects in Qatar are expected to maintain high levels of growth into the future. Fuelled by this growth and support, Qatar has developed into an ICT hub within the region with seemingly unlimited potential to grow, with Qatar’s successful bid to host the 2022 FIFA World Cup and the influx of professionals and investment this will bring over the next 12 years. According to research company IDC, Qatar’s fixed-line market has also continued to expand due to growth in Internet usage and Internet subscribers in the country are forecast to grow by more than 22% from 2010 to 2013. Current ICT trends in Qatar According to recent findings by research firm IDC, cloud-based IT services are currently worth QR61 billion globally, and that figure is expected to grow to around QR154 billion by 2013. In Europe, enterprises are beginning to embrace the business opportunities offered by virtualising assets and accessing applications through the cloud.
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Qatar’s ICT sector seeks to act as a catalyst for the country’s economic development beyond its dependence on hydrocarbon revenues. The country has made significant progress to grow this critical sector in 2012 with countless initiatives becoming a reality.
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Connecting the dots
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Qatar’s cloud computing revolution started in a high profile way with MEEZA. Established at the Qatar Science and Technology Park (QSTP), MEEZA (Arabic for advantage), has taken cloud computing to a new market. Similar initiatives are also being undertaken at the Qatar Data Centre in Qtel. Cloud services adoption is in its early stages in Qatar. A few organisations, such as mega-development project authorities (eg: Energy City), sports authorities and educational centres (Education City and Qatar University) deploy internal private clouds providing shared services to their members. Currently, quite a few companies have plans to adopt public cloud services over the next couple of years. Virtualisation IDC research recently found that 70% of the Chief Information Officers (CIO) of companies and organisations in the region believed that the virtualisation of assets will bring great benefits in the next couple of years. Virtualisation involves the creation of a simulated hardware environment in the form of a virtual machine that runs software as if it were running directly on physical hardware. Beginning with servers, virtualisation can extend through storage, networks, operating systems and system management platforms. In Qatar, several organisations across various sectors have initiated and, in many cases, made substantial progress with virtualisation projects. The oil and gas, finance, education, and transportation markets in particular have been keen to deploy virtualisation technologies, some of them now extending their virtual environments beyond storage and servers to networks. Mobile devices According to recent research, there will be 15 billion mobile devices in use by 2015, and by 2020 over 35Zb (35x10 to the power of 21 bits) of data will be generated by users globally.
With its growing population with a high disposable income, Qatar and the region is a rich market for mobile services. Telecommunications makes up the bulk of overall ICT spending with a 65% share. The Qatari telecommunications market has witnessed tremendous growth over the course of the past few years largely defined by sustained progress in the mobile market and the recent expansion of access to high-speed/ broadband Internet services. Indeed, total telecommunications market spending in Qatar expanded approximately 29% year-on-year in 2008, with spending on mobile services growing some 34% and the pace of broadband spending increasing approximately 64% over the same period. Factors behind the rapid growth of mobile broadband include the service becoming more affordable; a huge expansion in the capacity of 3G networks in the region; and a rapid increase in customers buying portable laptops, handsets and tablets. Following research by ictQATAR, it was revealed mobile phone penetration in Qatar increased by 38% between 2004 and 2009 and reached 120% in 2010. Qatar offers the lowest broadband prices in the GCC. Managed services Managed services involve third-party management of an organisation’s IT and network infrastructure. Management services do not usually include any transfer of IT assets or the large-scale transfer of personnel to third parties and are generally provided through contracts shorter (typically one to five years) than those for outsourcing. Essentially, the service provider takes responsibility for managing part of a client’s information system infrastructure, applications or operations. These are select services, delivered into three categories: onsite (traditional), hosted/as a utility, and pay-per-use
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ICT Boom
With ICT playing such a huge role in the development of Qatar, Progress looks at the recent evolution of the sector, from e-projects and smart cities to the contributions of the public and private sectors.
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s evidence of Qatar’s emergence as a regional knowledge player, ictQATAR’s 2011 Annual Report revealed that the country’s booming technology sector grew to QR15.5 billion in 2011, posting an average annual growth of 17% in the last five years. The information, communication and technology (ICT) sector accounted for about 1.6% of Qatar’s overall GDP in 2011, up from 1.2% in 2008. The report also revealed that a growing number of people from all sectors of society are adopting ICT in their lives. By the end of 2011, 89% of households and 87% of individuals in Qatar’s households had a computer, up 18% and 17% respectively from 2008. Broadband usage has increased ten-fold to 68% of households over the same period while Qatar’s active mobile penetration now stands at 135% – well above the 116% average for developed nations. The report highlights the government’s role in this development as it continues to lead the way in driving the sector. The public’s use of the growing number of i-Gov services increased by 14% in 2011, to more than 2.5 million transactions. These services include obtaining a passport, paying parking tickets or performing any other of the 98 e-services now available through Hukoomi – Qatar’s e-government portal. In recognition of such efforts, Qatar’s standing on the United Nations e-government index – a measure of ICT readiness
as well as infrastructure and human resource development – jumped to 48 out of 190 countries this year, up from 62 in 2010. The number of government and private sector employees taking online courses to enhance their careers through Qatar’s learning portal reached 5,000 in 2011. The ongoing telecommunications “liberalisation” has resulted in healthy competition that helps local businesses as well as individual consumers enjoy benefits such as lower prices and a greater variety of products and services with user-friendly terms and conditions. In addition, ictQATAR established a new Consumer Affairs Department to ensure that the rights of all telecom consumers in Qatar are protected. In 2011 ictQATAR advanced its goals by improving connectivity, boosting human capacity, fostering economic development, enhancing public service delivery and advancing societal benefits. This momentum did not go unnoticed across the region, as Qatar now ranks second out of all Arab nations on the International Telecommunication Union’s (ITU) ICT Development Index with its standing improving to 44 out of 152 countries in 2011. Furthermore, in the World Economic Forum’s Networked Readiness Index, which measures a nation’s capacity to fully benefit from new technologies in terms of economic competitiveness, citizens’ daily lives and overall social growth, Qatar ranked 28 out of 142 developed and developing countries in 2011.
Developing Smart Cities as a part of ICT Investment Strategy The Middle East Smart Cities Summit 2012 brought together development authorities and infrastructure companies as well as governmental and corporate entities to share expertise and learn about smart city development opportunities in the region. At the opening of the two-day summit, delegates from Qatar, Saudi Arabia, the UAE, Europe and the US were given presentations on the Lusail development and Qatarís Smart City potential. On June 17, ictQATAR hostedThe First Annual ICT Investment forum with public and private sector players to facilitate partnerships regarding these investment opportunities. Ali Al Khulaifi, Market Development Manager at ictQATAR, stated that the forum identified 68 investment opportunities in Qatar which can be expanded and developed with public and private sector partnerships. These include cloud computing, live streaming, logistics, multipurpose smart cards, a variety of medical services, e-banking and defence systems.
Al Khulaifi said that the Qatari ICT market is expected to grow 10 % annually reaching around QR 24.7 billion in 2016, This growth is predicated upon ICT capability acquisition to execute sectorial plans, as well as the ICT requirements of Qatar’s many infrastructure projects. Of the 68 opportunities presented at the forum, 13 have been identified as having a gap in market supply, and four are innovation-based opportunities, under which Smart Cities can be categorised. Al Khulaifi gave the definition of a Smart City as an ‘intelligent ecosystem employing integrated technology to provide public and private services’. They are designed to be customer centric and enhance customer experience. Services include voice, data, machine-to-machine and managed services. He said that improvement of microelectronic technology and miniaturization has allowed cost reduction and created simpler and more userfriendly devices and interfaces. Smart cities tend to be long-term projects that would usually require around five to ten years, and require also significant investments. Al Khulaifi also said that smart cities feature city-wide ubiquitous data access supported by a fiber backbone to provide fast Internet access to all offices and homes. He said that the Qatar
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Ali Al Khulaifi Market Development Manager, ictQATAR
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e-Readiness The GCC leads the world in e-Readiness, mainly due to increasing digital literacy, particularly in Qatar and the UAE, according to UN e-Government survey. The survey is carried out every two years and takes stock of how countries around the world are progressing towards achieving true e-Government status. This year’s report found many have put in place e-government initiatives including the acceleration of the adoption of ICT across the public sector in order to deliver more efficient, more transparent, more inclusive and more sustainable government to all citizens. Countries that lead the index and those that have moved up have moved beyond basic e-Services to integrated systems that link different institutions and departments offering a single point of contact to the public. This is where Gulf countries shine, according to the survey. “Although the UN 2012 survey shows that no country has a single sign-on integrated portal, the UAE, Bahrain and Qatar are among the 10 closest to such a feat,” commented Jamil Ezzo, Director General of the ICDL GCC Foundation, which is the sole body to implement and disseminate the programme across the GCC and Iraq with the support of leading educational institutions and accredited bodies. Finding that the UAE, Bahrain and Saudi Arabia also appear in the top 25 leaders of emerging countries in e-Government development, he said this proved the seriousness of the e-Government agenda across the Gulf region. The report highlighted other notable achievements of Gulf states in the survey as compared to 2010. The UAE was highly visible as it advanced 21 positions in the global rankings to take 28th place and fifth in Asia. Qatar moved 14 positions up to 48th place, Saudi Arabia by 17 places to 41 and Oman by 18 places to 64, while Bahrain and Kuwait did not make considerable progress, according to the report.
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$77 million by 2013 and $149.5 million by 2017. Qatar, Saudi Arabia and the UAE are said to have earmarked over $63 billion over the next five years to develop smart cities.
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National Broadband Network company (Q.NBN) would facilitate this feature, and is currently rolling out the countryís new fiber network. Homes and offices should be enabled with smart metering and/or smart appliance networks, and must support city services, such as kiosks, e-Wallet readers and transaction processing. According to Al Khulaifi, a smart city typically has four key stakeholders involved in developing smart city initiatives: city government entities, public service sectorial entities, systems integrators, and service providers. Systems integrators, when present and active in city’s ICT (information and communications technology) initiatives, are responsible for the procurement, and implementation of the ICT initiatives. Al Khulaifi said that between Lusail City and The Pearl, the market size for systems integrators is expected to be $6.47 billion (QR23.5 billion) from 2013-2017 cumulatively. The service provider market for these two developments is expected to be worth $2.1 billion (QR7.6 billion) cumulatively from 2013-2017. He identified nine investment focal points on the Lusail project, including intelligent building management, communication and collaboration in connected real estate, city smartcards, energy and environmental services, and connected education with student portals and distance learning. Business service revenues at Lusail City are projected to be
Public and private contributions Qatar’s ICT market, which grew by more than 20 % in 2010-11, is expected to maintain the momentum in the coming years. But further development of Qatar’s ICT sector requires the involvement of both public and private entities. Al Khulaifi said “the National ICT Development Strategy recognises that the government can play many roles in fostering growth, including the role of direct developer, facilitator and even financier. Balancing these possible roles with the interests and capacities of the private sector and individual investors is the key to the success of our strategy.” The ICT Investment Forum brought together leaders from across segments that have an interest in developing Qatar’s ICT sector, including policymakers, corporations, small and medium-sized enterprises, investors and regulators. The forum’s objective was to raise interest in investment opportunities in the ICT sector and to facilitate collaboration among the different entities with a stake in its development. Faleh Al Naemi, Assistant Secretary General, ictQATAR said, “I believe the Qatari economy will continue its positive momentum as a result of the multi-sector developmental path outlined by the National Development Strategy. Qatar’s ICT sector is positioned at the core of this sustained economic and societal development, both as a driver and enabler of economic development,” he added. The ICT Development Strategy identifies specific ICT development and investment opportunities in Qatar over the coming three to five years. The strategy’s aim is to develop the required ICT capabilities in Qatar, while also identifying areas for innovation, expansion, and market differentiation for the country. It takes into account the impact that major infrastructure projects such as the New Doha Port, Lusail City and FIFA 2022 initiatives will have on the growth of the ICT sector, as well as other key differentiators inherent in Qatar’s ICT market that make it prime for development, including a world-class ICT infrastructure, availability of financial resources, and business-friendly laws and regulations. The strategy also includes a comprehensive assessment of investment opportunities in the country with some 68 distinct areas of investment opportunity being identified. Seventeen of these are considered priority opportunities, in terms of both potential value and benefit to the country’s continued development. Abdulaziz Al Khalifa, Executive Director (Strategic Planning & Control), Qatar Development Bank, said, “QDB is committed to supporting the ICT Development Strategy. We believe in its aspirations. I am glad to announce that all the 68 opportunities outlined will receive pre-approval for the Al Dameen loan programme, subject to ictQATAR’s endorsement of a detailed busi-
ness case for the undertaken opportunity.”
Backed by a strong economy and the government’s ambitious ICT investment programme, Qatar’s IT spending will trend upwards and scale up by 15% to touch almost QR2 billion this year, a new report has said. Qatar is also seen as the fastest-growing IT market in the Gulf region over a five-year forecast period by researcher Business Monitor International.
decision making. Special care should be taken to include minorities and vulnerable members of the population, and those who would not usually have access to such services including immigrant labourers and those with disabilities. The 2012 report said that, at a global level, “the trend towards personalisation of services has gained momentum with more countries tailoring substance and presentation in accordance with varied preferences. Citizen inclusion is also expanding... with more governments around the world in 2012 accepting and promoting the need to inform and involve the citizen in the public decision making process.” The report highlighted some of the benefits of e-government programmes, saying that they “can be a catalyst in boosting productivity, thereby speeding up the benefits of newer technologies to the people. In the last few years, many countries have employed ICT in areas such as entrepreneurship, innovation, research and development, promoting distance learning, ehealth, e-agriculture, e-trade and other fields. Accessing these new technologies for development is being recognised as one of the key sources of economic growth. Of particular importance is the effect of cellular technologies. Where national governments have taken a lead, rapid mobile technology proliferation has contributed as much as a 1% annual increase in economic growth over the last few years.” Kerby cautioned that climbing the rankings will be harder from now on, and will require a concerted effort by all stake-
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Qatar IT spending to touch QR2 billion
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UN recognition Qatar’s development of e-government services has been recognised in the UN e-Government Survey, which saw the country rise to number 27 in the online service index rankings, a significant improvement from its previous ranking of 90 in 2010. The survey also placed Qatar at number nine in the e-Participation index for 2012. The online service index measures development of online service delivery to citizens and businesses through the Internet and other digital means, while the e-Participation index is indicative of how governments create an environment in which citizens can be more active and supportive of their governments. The Ministry of Municipality and Urban Planning’s Baladiya mobile platform is an example of how citizens and residents can bring issues such as poor street maintenance to its attention by taking a picture and sending the location. Qatar is tied with Saudi Arabia in the e-Participation index, and is one rank below Bahrain. The UN e-Government Survey combines survey data from at least five ministries, taking into consideration issues such as integration of systems, user take-up of systems and access to e-government services. This year’s survey had a special focus on sustainability and the environment, and involved the relevant ministries in this regard. Richard Kerby, Inter-Regional Adviser, e-Government Department of Economic and Social Affairs, UN, presented elements of the survey at a CIO Forum organised by ictQATAR, where information officers from key government agencies and companies shared their experiences and best practices. In the 2012 survey, Qatar came 48th in the e-government development index, an improvement from 62nd in 2010, and 11th in the Asia region. The United Arab Emirates came 28th, Bahrain came 36th, and Saudi Arabia 41st. Hukoomi, the Qatari government’s portal, was commended in the report for expanding citizen-centric services, and was highlighted as a case study in the survey for excellence in integration of e-services across government agencies and functions. These online services include visa applications, payment for utilities, settlement of traffic violations and renewal of health cards, among others. Hukoomi’s easy access to more than 100 topics and articles relating to Qatari law and society was noted in the case study as a significant accomplishment, as well as its direct integration to sub-portals, including e-tendering. Kerby stressed the need for multichannel service delivery, taking into account online, social media and mobile platforms as well as access to traditional paper documents, forms and applications, which are often neglected in modern digital portals but are preferred by many. The UN expert said that the ultimate objectives of the survey and of e-Government in general are to acknowledge and promote better services and delivery, improve access and outreach of information, and empower people through participation in
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Rich Riley, Senior Vice-President and Managing Director, Yahoo! Europe Middle East and Africa speaks at the Yahoo! Maktoob press conference
holders. The 2014 survey will focus on open data, cloud technologies, citizen interaction and multichannel services. ictQATAR and Yahoo! in strategic partnership Yahoo! and ictQATAR have announced that they have entered into a strategic partnership to collaborate on the development of digital media and content in Qatar, with a look to promoting the generation of Arabic language content. Yahoo! will work closely with ictQATAR to cultivate innovation, stimulate online growth and nurture entrepreneurship by providing expertise from its global-scale operations in the areas of digital content, multiplatform applications, and digital advertising. As part of the agreement, Yahoo! will collaborate with ictQATAR’s incubation centre to help entrepreneurs and start-ups develop, distribute and monetise their content. Rich Riley, Senior Vice-President and Managing Director, Yahoo! Europe Middle East and Africa, said, “We are very excited to be entering into this strategic partnership with ictQATAR. This is a joint project with common objectives: Qatar has incredible ambitions for growing the ICT sector and Yahoo!, as the premier digital media company, is well placed to make those plans a reality to the benefit of Qatar’s business, brands and consumers.” Ali Al Khulaifi, ICT Market Development Manager, ictQATAR, said, “ictQATAR is committed to developing a vibrant digital content ecosystem in Qatar, with a specific focus on quality Arabic content. Qatar and the Arab world have much to share, and without question the best way to share our thoughts, ideas and innovations is digitally. We look forward to working with Yahoo! as a strategic partner to make Qatar a hub for leading digital
content in the region, and creating an entrepreneurial spirit among our local talent in the industry.” Only 2% of online content is in Arabic, although Arabic speakers make up 5% of the global online community. Riley said that large archives, many of which are in tape format, have not been digitised. Old texts, historical documents, videos or any other Arabic language content can be put online, adding to the wealth of information available on the Internet. Yahoo! is also hoping to improve its quality of the non-licensed Arabic language content on its Yahoo! Maktoob website which they admit has been lacking, and add locally-sourced content to make the Maktoob service relevant to users in any location in the region. “With 70 million people online today in MENA and 50 million more expected to come in the next two to three years, this is one of the fastest-growing markets in the world. With all this growth, there is still much to be done to develop the digital ecosystem in MENA and we are keen to be collaborating with the region’s leading initiatives to fuel this development,” said Ahmed Nassef, Vice-President and Managing Director, Yahoo! Middle East. In the past two years since Yahoo! acquired Maktoob, the company says its combined reach grew from 30 million users to 56 million in the Middle East and North Africa. Yahoo! has also invested in expanding its regional footprint with fully staffed offices across Dubai, Amman, Cairo, Riyadh and Casablanca, covering editorial, engineering, sales, marketing and customer care. Riley said he expects Yahoo! will open a Qatar office as a natural development of the new partnership with ictQATAR
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Supporting Development
How malomatia contributes to the knowledge, skills of the Qatari population
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atar has emerged as one of the most exciting and vibrant countries in the world, thanks to visionary leadership and vast oil and gas reserves. The country has made significant progress in its mission to build a knowledge-based economy based on a developed ICT sector driving sustainable development that will benefit all citizens. The ICT sector in Qatar seeks to act as a catalyst for Qatar’s economic development and the creation of an economy that has moved beyond dependence on hydrocarbon revenues. Qatar’s ICT growth is attributed to a growing and young population with a high purchasing power and an increasing interest in technology as well as an unparalleled construction boom driven by high liquidity. Progress Qatar speaks to one such passionate IT professional whose company churns out business to support the bigger picture – a sustainable knowledge-based economy for Qatar – Yousef Al-Naama, CEO, malomatia Please describe the kind of services malomatia undertakes. Also, briefly describe the journey of malomatia in Qatar – when did it start, its hurdles, its goals? malomatia, through its expertise and leadership in information technology, is primarily focused on building a sustainable knowledge-based economy to support the Qatar Vision 2030. The company provides the world’s best practice services and
market leadership across the IT sector to support both public and private entities in Qatar. By recruiting the very best in talents, both locally and internationally, and by collaborating with leading technology firms as well as culturally-sensitive and visionary partners, malomatia has demonstrated its commitment to Qatar to deliver extraordinary value and services to its users. By ensuring to understand market needs, building strong partnerships and applying local knowledge and skills we deliver high-value-added IT support and engage in long-term relationships. In 2008, Qatar’s economic policy began focusing on developing Qatar’s non-associated natural gas reserves and increasing private and foreign investment in non-energy sectors; government, healthcare and education have become sectors of strategic importance to the State. malomatia’s journey started then with the company established to provide consulting and system integration services to these emerging sectors. Like any new venture, the company has faced challenges along the way, including competition for talents and subject matter expertise and the need to prove its capabilities in a competitive business environment. However with an unerring focus on quality, customer satisfaction, effective partnerships and the availability of local expertise, we have been able to develop an enviable reputation for excellence through several successful projects including our support of healthcare informatics and our delivery of e-government services such as the Hukoomi portal.
Please briefly explain the support it provides in each sector. There are some services that can be supplied across all of the sectors that we work with such as IT consultancy to support an enterprise. Services in this area support strategic and tactical planning, enterprise architecture, sourcing of services, project and program management, procurement, and optimizing the use of business applications. Underpinning these high-end services we can also provide clients with the support to deliver on plans and to see projects through effectively to positive results. In the Health Sector, malomatia employs one of the strongest healthcare informatics teams in the country and can support best-practice healthcare informatics across the spectrum of healthcare delivery. We have solutions that can support healthcare providers to empower clinicians through process change that makes more effective use of people, technology, and information. malomatia enables its customers in the Healthcare sector, to transform patient care through delivery of exceptional and efficient IT services, managed according to world class standards. In the Government Sector, malomatia supports modernization initiatives and IT adoption across multiple government entities, for its customers in the Government Sector. We provide Consultancy, Implementation and Managed Operation services to ensure alignment among different IT initiatives and success-
Yousef Al-Naama CEO of malomatia
ful deployment of system. We also provide Change Management services to support customers in their understanding and transition to new systems and methodologies. As for Education, malomatia design, implement and deliver world-class educational and learning solutions that provide educators and learners (of all age groups) a unique teaching and learning environment. How is malomatia working towards helping Qatar achieve its National Vision 2030? By 2030, Qatar aims to be an advanced society capable of sustaining its development and providing a high standard of living for its entire people. Qatar’s National Vision defines the longterm outcomes for the country and provides a framework within which national strategies and implementation plans can be developed. It’s all about having a society that is able to support the ongoing development of Qatar as a knowledge-based economy. malomatia is a strong sponsor to this vision; we contribute to the knowledge and skills of the Qatari population in each of the projects we engage in, we seeking out appropriate partners who have the credibility and cultural-awareness to support our endeavors, and we create an environment that attracts talents and experts. In what ways does malomatia engage local talent/students? malomatia employs graduates and local talent within all of its teams to support a wide-range of projects. One of our key goals in malomatia is to deliver sustainability and we believe such a goal cannot be achieved without strong local Qatari professionals
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malomatia currently provides services only to government, education and healthcare sectors. Why? In the future would malomatia expand its services to other sectors as well? malomatia has developed its strategies and business plans in alignment with the State’s priorities and Qatar National Vision 2030. As such, the first phase of our business plan has put focus on meeting the future IT requirements of Qatar to support national objectives in providing integrated IT services and solutions in the three major sectors: Government, Healthcare and Education as well as to build local capabilities and subject-matter expertise and achieving sustainability. However, malomatia does provide IT services and solutions to all other sectors as well and we categorise those services as non-core business enablement IT services solutions. Examples of such services and solutions that we provide include: portal and enterprise content management services, Enterprise Resources Planning (ERP) services, Enterprise Integration and Enterprise Architecture Service, and many others. malomatia is currently reviewing and refreshing it’s strategies and business plans which will include expansions and provision of services into new sectors such as Oil and Gas, Finance and Banking, Telecommunications and others.
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Our goals are to continue enriching our values and deliver optimum IT services and solutions in alignment with the requirements and needs of state development and the national vision. We would also continue to strive and become the local IT service provider of choice in Qatar taking a pre-eminent position in support of sustainable local capabilities.
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The Fibre Provider Qatar’s vision of becoming a knowledge-based society by 2030 is indeed a lofty goal, but with enterprises like Qtel putting in the spadework to provide a world-class technology infrastructure, it’s making everyone else’s jobs a lot easier.
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he Qatar Telecom Group (Qtel) is an international communications company with a significant presence in the Middle East North Africa (MENA) and South East Asian region, with a consolidated customer base of 83 million customers as of November 2011. It operates a portfolio of brands including Qtel, Indosat, Asiacell, Wataniya, Nawras, Nedjma and Tunisiana. The Qtel Group’s principal activities are mobile telephone services, broadband solutions, digital futures and fibre technologies, serving both consumer and business markets. The Qtel Group is ambitiously growing its global business on the basis of its insights into the needs of customers in emerging markets. Progress looks at recent developments. Mobile broadband Qtel is continuing to push the envelope by deploying mobile broadband technology to address key social issues, forging a number of major new partnerships and collaborations in the US in recent weeks. Chairman HE Sheikh Abdullah bin Mohammed bin Saud AlThani emphasised Qtel’s drive to encourage creativity and connections between entrepreneurs and original thinkers as part of his role as a Commissioner to the UN Broadband Commission for Digital Development, which met in New York recently. According to the Commission’s report State of Broadband 2012, mobile broadband use could help address the so-called
‘digital divide’ of access to the Internet, as there are almost twice as many mobile broadband subscriptions as fixed broadband connections in the world today. HE Sheikh Abdullah said: “We all recognise the potential impact of mobile broadband on the lives of people in the developed and the developing world. It is becoming a primary enabler of economic progress, healthcare information and social contact in many societies today. That means that operators have a particular responsibility to push the envelope in terms of promoting creativity and the intelligent use of technology.” State of Broadband 2012 was launched at the Broadband Commission meeting in New York, which aimed to expand on the theme of ‘Achieving Digital Inclusion for All’. For the first time ever, the report analyses global broadband rollout country by country, and the impact of broadband on government policy, economics, social inclusion and sustainability. According to the data, Qatar ranks number eight in the world in terms of the percentage of individuals using the Internet (86%), and more than three-quarters of the country’s medium and large enterprises leverage broadband access. As well as the Broadband Commission meeting, the Qtel chairman and other team members took part in the Social Good Summit, where they got involved in the excitement and global conversations of the international event. Residential complex offers Qtel Fibre Al Gassar Resort, one of Qatar’s luxury waterfront communities,
became the first residential development in Qatar to offer residents cutting-edge Qtel Fibre services. A major part of the promise of the Al Gassar Resort is that residents can enjoy the very best that life can offer, and – by working directly with Qtel - the developers have provided every apartment with access to Qatar’s fastest-ever Internet and next generation Mozaic TV. Resorts Development Company (RDC), the master developer behind Al Gassar Resort, actively engaged with Qtel to create a comprehensive, resort-wide Qtel Fibre solution. With full technical support from Qtel throughout the construction process, Al Gassar now offers access to Qtel Fibre in all 422 apartments. The launch of the facility was celebrated at a special ceremony held at Al Gassar Resort during the year, attended by senior Qtel and Al Gassar executives. Omar Alfardan, President of RDC, said, “We are proud to be the very first residential development in Qatar to offer access to Qtel Fibre. Al Gassar Resort is distinguished by its unique services, beautiful architecture and its prime location. This agreement demonstrates our commitment to offering the most modern technological services, reflecting Qatar’s growing status as a hub for innovation.” Waleed Al Sayed, Chief Operating Officer (COO), Qtel Qatar, said, “Increasingly, residents in Qatar want the very best in Internet access and entertainment as part of their home life. The Al Gassar Resort has recognised that demand, and worked with Qtel to be able to offer the incredible experience of Qtel Fibre across the whole waterfront community.” Existing Al Gassar Resort residents can sign up to Qtel Fibre services exclusively at the Lagoona Qtel Store in West Bay,
where they can enjoy a demonstration of the next generation services available. Once they have applied for the service, Al Gassar residents will have their Qtel Fibre services connected within a week. For Qtel customers, this opens up a new world of ultra-fast broadband, with Qtel packages of 10 Mbps, 50 Mbps and 100 Mbps, High Definition (HD) digital television, online gaming, Video on Demand (VOD), home phone conferencing, and many other exciting services available. AC wireless technology Qtel became the world’s first Internet service provider to offer select customers the latest AC-enabled Linksys Smart Wi-Fi products. The Linksys Smart Wi-Fi Router AC 1750 HD Video Pro (model EA6500) wirelessly connects Smart TVs, Blu-ray players and gaming consoles at gigabit speed through the complementing Linksys AC Universal Media Connector (model WUMC710). This new Qtel router harnesses speeds three times faster than the popular 802.11n models, offering better range and reliability as well. A Qtel spokesman said: “Qtel Fibre and the new Linksys Smart Wi-Fi Router are a perfect match. Customers can take control of their home entertainment system from anywhere, at any time, and easily share video-on-demand, music and video games with their friends at the fastest-ever speeds.” “The router and universal media connector are due to be made available for Qtel Fibre customers in the coming weeks,” he added. Qtel COO Al Sayed remarked, “Qtel has worked hard to ensure we are the first service provider in the world to offer this
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HE Sheikh Abdullah bin Mohammed bin Saud Al-Thani Chairman, Qtel
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“Qatar ranks number eight in the world in terms of the percentage of individuals using the Internet (86%), and more than threequarters of the country’s medium and large enterprises leverage broadband access.”
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new solution to our customers. With improved range and the capacity to reach gigabit speeds over Wi-Fi, we will be able to rollout richer and more agile video services to our customers. Our investment in the nationwide QTel Fibre network positions Qatar at the forefront of these new and exciting developments.” Qtel Fibre and next-generation Mozaic TV services are currently used by approximately 36,000 subscribers, and these services will be continually developed to accommodate 131,000 homes for future activation. “The new AC-powered Linksys Smart Wi-Fi Router is designed to meet the explosive increase in video consumption and the rapid increase of Wi-Fi-enabled devices in the home,” stressed Brett Wingo, Vice-President and General Manager of Cisco Home Networking Unit. “With this new model we have combined top-of-the-line performance with unmatched usability and intelligence to help consumers get a better experience in the home. It is the ideal Wi-Fi solution for consumers to pair with an extremely fast broadband connection like Qtel Fibre,” he added.
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Improving telecoms standards In a bold speech at the International Telecommunication Union (ITU) Telecom World 2012, Qtel Chairman, HE Sheikh Abdullah challenged the telecommunications sector’s operators, regulators and partners to come together to solve some of the major challenges facing both customers and the industry. In his wide-ranging keynote talk at the event, which is the leading platform for the global ICT community, HE Sheikh Abdullah identified the need to support new broadband infrastructure projects and the necessity of simplifying international roaming charges as two of the most significant challenges facing the industry. The price of international roaming has become a hot global issue with charges being inflated by national operators. The ITU is pushing for legislation and industry agreement that would secure roaming price transparency, immediate access to price information, greater competition and prices that are based on the actual costs. In his speech to the assembled dignitaries, HE Sheikh Abdullah pledged his support for this international effort. “The people who travel abroad are our best customers and we need to make sure they can use their mobiles safely and securely,” he said. “I fully support the ITU Secretary General, Dr Hamadoun Toure and his call for full transparency and choice. My message is that we are committed to solving this problem.” The global roaming market is expected to grow from $45 billion (QR164 billion) in 2012 to more than $60 billion (QR220 billion) by 2016, thanks to a boom in the number of global roamers, according to Informa – a global provider of business data. The report notes that regulation and legislation have helped to protect customers against escalating charges and to preserve competition. Qtel Group companies have taken the lead in providing fair and transparent roaming services for customers with the
launch of SmartRoamer in 2009 and the more recent launch of data roaming packages which provide bundles of roaming data when people travel abroad. In addition, HE Sheikh Abdullah tackled the key issue of how regulators and operators can create the right regulatory framework to enable the next phase of broadband development. “Broadband access is increasingly important for economic development, information access, cultural exchange and even national security, and matching the growth in demand with network investment will be a critical success factor for ongoing growth,” he said. “It is the responsibility of network investors and operators to ensure that investments in broadband are profitable so that investments can keep pace with the public’s demand for broadband services. It is the responsibility of governments and their telecoms regulators to provide a framework that promotes investment. National and international operators and regulators need to be on the same side. That way we can deliver broadband to the greatest number of customers in emerging markets,” he concluded. At ITU Telecom World 2012, the Qtel Group was showcasing a broad range of new innovations and services that will enrich the lives of customers around the world, from Mobile Money solutions and entertainment products through to the latest 4G networks. Digitising Lusail City Qtel announced bagging a major contract to provide worldclass communication services to residents and businesses in the new Lusail City development. This ambitious ‘Smart City’ is being developed in line with the Qatar National Vision 2030 (QNV2030) to transform the country into a knowledge-based society. “We are committed to achieving a knowledge-based society. We will provide the best communication services available in the world to Lusail,” a senior Qtel official said. Qtel signed an agreement with Lusail Real Estate Development Company (LREDC) which it called the most strategic ever signed by the company. Qtel COO, Al Sayed said, “Qtel has provided the network foundations for many of Qatar’s most important residential and commercial projects and today’s agreement is among the most strategic we have ever signed. We are pleased and proud that residents and businesses in Lusail will benefit from some of the most advanced communications services ever provided in Qatar, adding another element to this magnificent project.” Under the agreement Qtel will deliver advanced communications services to all the residents of Lusail, including businesses and government entities located on the mega-development project. Lusail – Qatar’s future city which will eventually provide accommodation for up to 200,000 people – is set to be one of region’s leading urban areas, offering marinas, residential areas, island resorts, commercial districts and leisure facilities
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odafone Qatar (VQ) switched on its mobile network in March 2009 – to add some competition to the mobile segment – and it feels that customers have benefited from a wider choice of innovative communication services, value offers and promotions since while the overall use of international calling, and particularly mobile internet, have significantly grown. It’s well documented that a world-class communication service, and the infrastructure which complements this, are key enablers for supporting Qatar’s growth of a knowledge-based economy. As a global company with local roots here, VQ is helping to shape the future by bringing new and innovative technologies to the country. Fixed services were launched in October where VQ partnered with the Qatar National Broadband Network (QNBN) to deliver fast broadband internet access over fibre for everyone in the country. It has connected its first customers at Barwa City who are able to enjoy internet speeds of up to 100Mbps. VQ will expand its fibre services in conjunction with QNBN deployment of
Fibre to Homes and Corporates. QNBN plans to deploy fibre covering 95% of households in the coming three years. ‘Indie Fikra’ VQ showcased some of its latest innovations at QITCOM 2012 where it organised in cooperation with ictQatar, the ‘Indie Fikra’ Appathon, which was a 48-hour coding competition during which talented programmers developed new mobile applications. First place was claimed by team ‘Stalkers’ with their mHealth app called Onigiri, which was designed to teach children with or at risk of diabetes how to live a healthy lifestyle through their caring for a diabetic digital pet. Second place was awarded to team ‘Noble’ for their interactive magazine and comic called Abtal 22 which is aimed at getting kids interested in football. Third place went to team ‘Cereal Killers’ and their app Al Sadd Fantasy – a fantasy football game. Fourth place was awarded to team ‘AppliQations’ for their app Shofferz which aggregates and displays shopping offers around Qatar.
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Vodafone Qatar continues to expand its mobile customer base in Qatar. Brand new offers and enticing incentives grew its customer numbers to over 936,300. Progress looks at how Vodafone Qatar is adding competition and value to the telecommunications segment.
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Competition is crucial in telecoms
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With Qatar’s economy currently on the crest of a wave and with future growth imminent, VQ is promising to deliver new and innovative mobile voice and Internet services, which includes the launch of its post-paid services complementing its standing prepaid offering. Consumers will enjoy a wider choice and be enticed by some attractive propositions for business. Data Select VQ launched a new franchise channel in partnership with Data Select that is owned by UK Entrepreneur Peter Jones. The first Franchise presence was Hyatt Plaza through a kiosk and the second is Al Nasser Street with several more to follow in key locations across the country. The aim of this partnership is to meet the growing telecommunications needs of customers and bring Vodafone products and services closer to every community in Qatar.
Meanwhile, VQ opened up their postpaid service in June which included a number of bonuses to attract customers. The Vodafone Passport bonus was the first of its kind in the country and gave customers the ability to roam in over 20 countries for attractive prices. “It is important for the residents of Qatar to stay connected wherever in the world they travel. Vodafone’s launch of post paid services brings real choice to this segment of the market. Customers can now design their own unique plan according to their communication needs giving them complete control. The Vodafone Unlimited bonus is a great example of that. There are absolutely no hidden catches and customers can stay connected to their family and friends on Vodafone without having to worry about the cost,” said Chief Executive Officer at Vodafone Qatar, Richard Daly
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Working with the Private Sector The National ICT Development Strategy recognises that the government can play many roles in fostering growth in the sector, including the role of direct developer, facilitator and even financier. Balancing these roles with the interests and capacities of the private sector and individual investors is key to the success of the strategy.
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EEZA, a Qatar Foundation joint venture, was established to provide essential IT support to Qatar’s development process in close alignment with Qatar National Vision 2030 and has become Qatar’s leading IT solutions
and services provider. As an end-to-end services provider it is committed to promoting IT innovation and the most advanced solutions. It has built a powerful IT platform, offering data centre, infrastructure, application and cloud services and solutions. With its interconnected and geographically diverse data centres, MEEZA is positioned to support clients not only in Qatar but throughout the region. It works with clients to fully understand their specific IT challenges and offer cost-effective IT services to help them focus on their core business and scale rapidly whilst helping them to minimise business risk, reduce IT capital expenditure and speed up time-to-market solutions for new initiatives. MEEZA has been certified by the Service Desk Institute (SDI)
as the first three-star IT Service Desk in MENA region. The SDI is a leading global organisation for professionals working in the IT service and support industry. To become certified, it underwent an in-depth four-day evidenced-based audit that analysed all aspects of service support and delivery of its IT services. Commenting on the new certification, Ghada P El Rassi, Deputy Chief Executive Officer, MEEZA, said, “This new certification acknowledges our philosophy that commits us to bringing global standards to Qatar. Our dedication to provide an exceptional client experience that ensures superlative levels of support has positioned the company in the vanguard on a regional level.” The service provider has also been recognised as the ‘Leader in IT’ in the Arab World, during the prestigious Arab Achievements Awards. It won the award after being the first IT services and solutions provider in Qatar to be awarded the ISO 27001:2005 and ISO 9001:2008 certificates. The certifications are awarded by Bureau Veritas Certification and are accredited by the United Kingdom Accreditation Service (UKAS). MEEZA continues to receive awards and recognitions for the
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Innovate together Doha hosted the Cisco Expo Qatar 2012 under the theme “Innovate Together”. The exhibition brought together approximately 500 key technical and business decision-makers to discuss and experience the latest innovative global megatrends, and their societal and economic impact. The exhibition looked to highlight innovation and technological architectures as well as best practices that will transform businesses and increase business productivity in Qatar. Cisco Expos are the IT industry’s premier business and technical events that bring together talented IT and communication professionals to create a sustainable ICT industry across emerging countries. Cisco Expo Qatar 2012 examined the critical role that information and communications technologies play in the development of innovative business solutions. This included a series of in-depth sessions and demonstrations covering the power of collaboration and video, borderless networks, cloud and virtualisation and emerging technologies. These solutions are transforming businesses to networked enterprises in the region. Keynote sessions explored how megatrends will affect the way we live, learn, work and play, both globally and regionally, and how Cisco’s architectures support this progression by creating a culture of long-term change. With particular reference to demographics, globalisation, sustainability, energy, green practices and industry transformations, the sessions and interactions offered a real platform for thought leadership and the role of innovation, to address our current and future government and business environment. Before the start of the expo, Tarek Ghoul, Director and General Manager Cisco, Gulf, Levant & Pakistan said, “This event demonstrates Cisco’s commitment and confidence in the Qatar market. Cisco Expo Qatar 2012 will be an excellent opportunity for us to showcase our latest technology solutions, demonstrating to businesses how technology will improve and enhance
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services provided to its clients on a regional level. In November 2011, the company was honoured with the Best Cloud Services Award 2011 at the third Data Centres Middle East conference in Dubai. It was recognised by the Data Centre Strategies forum for its outstanding contribution to the development of Cloud Services across the region.
Ghada P El Rassi Deputy Chief Executive Officer, MEEZA the services they offer - from simple connectivity to an intelligent platform that will dramatically improve productivity and collaboration and help drive productivity, competitiveness and societal change in Qatar.” New data centre solution Microsoft Qatar announced the launch of Windows Server 2012 and the Cloud OS platform in Qatar. The Cloud OS provides a modern platform to address industry trends while taking advantage of technology advancements. Commenting on this milestone in Qatar, Naim Yazbeck,
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Naim Yazbeck Country Manager, Microsoft
Country Manager, Microsoft, said, “At Microsoft, we have been hard at work delivering cloud innovation to help businesses succeed in this transformational time. What we are seeing in the industry calls for a different approach. Now, organisations can achieve a data centre without boundaries.” “The OS and apps are wherever you need them to be. We are committed to this vision and we call it the Cloud OS. This platform should unlock further potential for Qatari businesses and we wish to work closely with our partners in Qatar to leverage its maximum potential. I would like to congratulate Qatar Airways as the first to incorporate this platform in their evergrowing business,” concluded Yazbeck. “We have been using Windows Server 2012 through the Rapid Deploy Programme (RDP) to experience how it can empower a dynamic data centre,” said Shibu Mathai, Manager, Infrastructure Design at Qatar Airways. “We have benefited from the new virtualisation enhancements in Windows Server 2012, I can envisage that cloud computing will be extremely beneficial for our business development,” he added. Microsoft announced the availability of Windows 8 software in Qatar and around the world recently. Windows 8 offers a new UI, and a wide range of apps with the grand opening of the Windows Store, available on more than 1000 Windows 8 certified PCs and tablets, the software major said. Commenting on the launch, Yazbeck said, “With the launch
of Windows 8, Microsoft is unveiling a re-imagined Windows to the world. “Whether you want a tablet or a PC, whether you want to consume or create, whether you want to work or play, Windows 8 delivers a personalised experience that fits your unique style and needs. Windows 8 will be available in two versions at retail, Windows 8 and Windows 8 Pro.” For business users, Windows 8 Enterprise offers new possibilities in mobile productivity with features like Windows To Go, DirectAccess, and BranchCache, as well as enhanced end-to-end security with features including BitLocker and AppLocker. Launching at the same time is a new member of the Windows family designed for ARM-based tablets, Windows RT, which will be available pre-installed on new devices. Windows 8 features the new fast and fluid Start screen that gives users one-click access to applications and content. It has a new Internet Explorer 10 and built-in cloud capabilities with SkyDrive. In addition to the range of new devices available, consumers can also upgrade their existing PCs. Until the end of January, consumers currently running PCs with Windows XP, Windows Vista or Windows 7 are eligible to download Windows 8 Pro for a price. Windows 8 will be available for download to upgrade existing PCs in over 140 markets and 37 languages at http://windows.microsoft.com and at retail locations around the world, including Qatar, the company said
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HH, the Emir Sheikh Hamad bin Khalifa Al-Thani (right) walks alongside Gaza’s Hamas Prime Minister, Ismail Haniya, (left) during a welcome ceremony at the Rafah border crossing with Egypt on Oct. 23, 2012, in the Gaza Strip.
Qatar plays a key role in the Middle East, chiefly because of its dynamic foreign policy, which has the characteristics of a balancing act. The engagement of Qatar in NATO operations in Libya, its role in the Arab League and the coverage of Al Jazeera news during the uprising in neighbouring Bahrain suggest that this small carbon-rich Gulf monarchy has a potential to influence regional politics.
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he total developmental and humanitarian aid provided by Qatar (governmental and non-governmental) in the years 2010-2011 amounted to just over QR500 million and was distributed to 108 countries worldwide. The aid included contributions, donations, material, in-kind and technical
grants. HE the Minister of State for Foreign Affairs, Dr Khalid bin Mohamed Al-Attiyah said that Qatar’s assistance was aimed at alleviating poverty, spreading basic education, and providing emergency response and urgent relief to face disasters and crises, adding that it also aims to contribute to the Millennium Development Goals. A report by the Foreign Ministry’s International Development Department provides detailed information and statistics
on aid from donor bodies according to international standards and their references such as the Financial Tracking Service (FTS) of the UN Office for the Coordination of Humanitarian Affairs (OCHA) and the Development Assistance Committee (DAC) of the Organisation for Economic Cooperation and Development (OECD). The Minister said: “Qatar’s assistance is reflective of the objectives of international cooperation in the National Vision to achieve security and stability through development and humanitarian initiatives.” He added that the scope of Qatar’s humanitarian assistance has widened to include many geographical areas around the world, and was not limited to regional Arab and Islamic countries. Emergency aid was provided during a number of major disasters such as floods of Pakistan, Haiti and Japan earthquakes and droughts in the Horn of Africa.
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Qatar on the International Platform
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Global financial architecture The 13th Ministerial Meeting of the Group of 77 (G77) and China – a caucus organisation consisting of 132 mainly southern hemisphere UN member states – convened during the year to determine its agenda and points of action going into the 13th UN Conference for Trade and Development (UNCTAD XIII) in Doha in April. HE Dr Hamad bin Abdulaziz Al-Kuwari, Minister of Culture, Arts and Heritage of Qatar and Chairman of the National Preparatory Committee for UNCTAD XIII said that Qatar was working with the G77 and China to establish “guidelines and frameworks for development and prosperity, and despite the worst economic crisis we’ve seen in many years the world remains much the same. Poverty remains endemic, and equality and iniquity continue to prevail in many places, and developing countries continue to struggle for their voice to be heard in the international economic decision-making”. Al-Kuwari continued: “At the core of this challenge is enhancing synergies between the public and private sectors. Indeed it would be prudent for the public sector to embrace more holistically the values of the knowledge economy based on the
HH The Emir said the Arab world was going through very “difficult and risky” time with alarming dangers, and “full of hope” at the same time, stressing that the situation in Syria had reached an “unacceptable phase” as hundreds of innocent Syrians were killed every day by the Syrian regime”
imperative to continuously push the frontiers of knowledge, to continually challenge the status quo in true partnership.” He cited Qatar’s success in education as an example of its efforts to develop a knowledge-based economy, which is pivotal to economic development and is at the core of the G77 and China’s agenda. The minister fully supported the vision articulated by Indonesia in prioritising efforts in order for the G77 and China to be the “leading force in redefining the global development agenda, including seizing the initiative to hold a global summit on development in 2015” – the target date for the accomplishment of the Millennium Development Goals.
Arab intervention in Syria The Emir, HH Sheikh Hamad bin Khalifa Al-Thani spoke at September’s UN General Assembly congregation in New York and said that the Arab nations should intervene in Syria given the UN Security Council’s failure to act. “The Security Council failed to reach an effective position,” said the Emir. “In view of this, I think that it is better for the Arab countries themselves to interfere out of their national, humanitarian, political and military duties and do what is necessary to stop the bloodshed in Syria. We had a similar precedent when Arab forces intervened in Lebanon in the mid-seventies to stop internal fighting there in a step that proved to be effective and useful.” The Emir further urged all countries that believe in the cause of the Syrian people to provide “all sorts of support” to Syrians until they gain legitimate rights. He said the Arab world was going through very “difficult and risky” time with alarming dangers, and “full of hope” at the same time, stressing that the situation in Syria had reached an “unacceptable phase” as hundreds of innocent Syrians were killed every day by the Syrian regime that ‘“does not hesitate to use all sorts of weapons against its people.” Relief aid for Syrian refugees Qatar provided $46 million (QR167 million) in relief aid to Syrian refugees, of which $16 million (QR58 million) was provided during the holy month of Ramadan and Eid Al-Fitr. The gesture was part of Qatar’s relief campaign to alleviate the suffering of the Syrian refugee families in Lebanon. The humanitarian aid included establishing a field hospital and providing a number of ambulances, medicines and medical equipment for an estimated 50,000 refugees in order to meet their medical and health needs. The aid also included essential items of clothes, food and heating devices in addition to the construction of health facilities. Support for Afghanistan Al-Attiyah, the Minister of State for Foreign Affairs also took part in the International Donors Conference on Afghanistan which began in Tokyo in the presence of representatives from about 80 countries and international organisations. Afghan President Hamid Karzai, Japanese Prime Minister Yoshihiko Noda and UN Secretary General Ban Ki-Moon were among the participants. Addressing the meeting, the minister expressed gratitude to the government and people of Japan for hosting this important international conference. He underlined that the conference reflects the commitment of the international community to continue to support the Afghan people to face the challenges and establish security, stability and sustainable development. He noted that Qatar has always supported the Afghan people, and was among the first countries which provided financial support
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The Emir, HH Sheikh Hamad bin Khalifa Al-Thani (C), Palestinaian President Mahmoud Abbas (L) and Hamas Leader Khaled Meshaal attend a signing ceremony on February 6, 2012.
to Afghanistan under the generous initiative of the Emir who urged the establishment of a special fund to help the Afghan people. Afghan Ambassador, Khaled Zekriya believes Qatar has an important role to play in the future development of his country and the establishment of a peaceful and prosperous nation post-2014, following the withdrawal of NATO troops from the country. He said that while Qatar and Afghanistan currently have close bilateral ties, there are many areas in which the relationship between the countries could be strengthened in the future. Although he returned to Qatar after being called for a fivemonth consultation process in Afghanistan, he insisted that ties between the countries are strong and show signs of further improvement in the future. “It is important that we build on the relationship – not only what Qatar can do for Afghanistan, but what we can do for Qatar as well,” he said. He highlighted a number of areas for possible investment from Qatar, predominantly related to the field of agriculture, which is Afghanistan’s main sector. The county would welcome investment in laboratories for packaging and processing fruit
and vegetables produced there, which could then be exported to the GCC and wider region. He also mentioned the natural gas, petroleum and underground reserves available in Afghanistan, and the opportunities for Qatari companies to invest in sharing their expertise and technology in joint partnerships. Crucial role in COP18 China’s Vice Premier Li Keqiang urged Qatar to play a positive role that would help in the climate change negotiations. During his meeting with HE Abdullah bin Hamad Al-Attiyah, Chairman of Qatar’s Administrative Control and Transparency Authority (ACTA) and Chairman of Climate Change Conference (COP18), Li Kegiang said that being the host, Qatar is expected to play a positive role in getting a tangible outcome from the negotiations on the Bali Road Plan. The Chinese vice Premier also called on the developed countries to significantly reduce carbon emissions and to fulfill their pledge on providing more funding and assistance with regard to technology transfer. He reiterated that the international community must work together to tackle climate change through the restructuring of their economies, strengthening the envi-
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ronment protection and developing low-carbon economies. He called on world states to adhere to the UN Framework Convention on Climate Change, especially the principle of Common but Differentiated Responsibility (CBDR) and also urged energy producers and consumers to work closely together, to ensure the stability of the energy market. He also suggested a long-term Chinese-Qatari co-operation in the field of energy. HE Al-Attiyah said he was determined to strengthen Qatar’s contacts with China with regard to climate change as well as to help all parties to address this issue, and to push forward the Qatari-Chinese cooperation in the field of energy.
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Qatar-Japan ties hailed Abdullah bin Hamad Al-Attiyah praised the robust bilateral relationship between Qatar and Japan and said it was an example of successful cooperation and partnership between the two countries. “The fact that Japan chose Doha to host the 37th Japan Cooperation Forum for the Middle East shows the importance it attaches to our country and the importance of Qatar’s role in the Middle East,” said Al-Attiyah. “I am pleased with the fact that it was being held on the 40th year of Qatar establishing full diplomatic relationship with Japan. “Our relationship has made tremendous strides in the last 40 years. I congratulate both Qatar and Japan on this historic occasion. After Qatar became an independent sovereign state, it has given top priority to develop and maintain friendly, beneficial and diverse economic ties with Japan based on mutual trust, respect and win-win cooperation.” Support for Palestine Palestinian Interior Minister Said Abu Ali has hailed Qatar’s continued support to the Palestinian security sector. He said he had met HE the Minister of State for Internal Affairs Sheikh Abdullah bin Nasser bin Khalifa Al-Thani during an official visit to Qatar with a Palestinian security delegation and their talks focused on bilateral relations and ways of developing them. He praised the continuous support provided by Qatar to the Palestinian cause. The Palestinian minister noted that the talks also dealt with the future plans and projects in accordance with the Palestinian vision of the security sector which protects the interests of people and embodies the national aspirations of the Palestinians, whether in the field of infrastructure or training. He highlighted Qatar’s support for the Palestinian cause and the Palestinian National Authority (PNA), including the security sector which aims to meet the needs of the security forces and develop them to maintain security and stability in the country. Regarding agreements intended to be signed between the
two countries to enhance co-operation in this area, Abu Ali said that the two countries do not need such agreements, except to give them a formal framework. In response to a question about Qatari financial support for the restructuring of the Palestinian security services, especially as the National Authority is suffering from a severe financial crisis, the Palestinian interior minister said the Palestinian-Qatari relationship is not confined to only financial support, but Qatar always offers such support. It also provides support in the field of infrastructure, equipment and training. Qatar-Saudi customs link Qatar and Saudi Arabia will establish an electronic link between the customs departments of the two countries by the end of 2012. The decision was taken at a meeting of the officials of the two countries held in Doha. The Saudi delegation discussed the final arrangements for the completion of the automated link with Ahmed bin Ali Al Mohannadi, Director General of Qatar Customs Department. The statement said the meeting, attended by technical experts from both sides, discussed a number of topics related to procedures and arrangements of automated interconnection and exchange of customs data. The two sides underlined the importance of the completion of the electronic link to exchange data on the movement of vehicles. They also set a timetable for the conclusion of the electronic link between Abu Samra customs in Qatar and Salwa customs in Saudi Arabia. Darfur peace gains well received The international community believes that the Doha Document on Peace in Darfur has succeeded in reinstating stability to the Sudanese region, HE the Deputy Prime Minister and Minister of State for Cabinet Affairs Ahmed bin Abdullah Al Mahmoud said during the third meeting of the High Follow-Up Committee for Peace in Darfur. Al-Mahmoud said that, any failure to overcome the obstacles of implementing the document would lead to even more instability in the Darfur region and Sudan in general. HE the Deputy Prime Minister added that it was important to build on the success the document had helped achieve so far, in order to establish peace in the region. Al-Mahmoud further said that, Qatar was satisfied with the efforts made so far by all parties concerned to implement the document. He praised the efforts of the Sudanese government in particular, which created the High Follow-Up Committee for Peace in Darfur which is chaired by Sudanese President Omar Hassan Al Bashir
qatar and the world
Working with Korea it was a significant step forward in the long standing partnership between Korea and Qatar when President Lee Myung-bak visited Qatar to seal the formation of the First High Level Strategic Cooperation Committee. In an interview with Progress, Korean Ambassador to Qatar, HE Keejong Chung speaks about the thriving bilateral relationship.
K
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HE Keejong Chung Korean Ambassador to Qatar
orea and Qatar have steadily developed very close relations since they established the diplomatic relations in April, 1974. There are almost 2,000 South Koreans working in Qatar and it imports almost 30% of its domestic consumption of LNG from Qatar. Many Korean construction companies like Hyundai, Samsung, GS, SK and Daewoo are actively participating in infrastructure and plant-building.
How would you describe the bilateral relationship? In February 2012, President Lee Myung-bak and HH the Emir agreed to establish a High-Level Strategic Cooperation Committee to upgrade and expand our current relations to cover all aspects of national development based on the spirit of mutual benefits. As a result of the initiative, we held the First High Level Strategic Cooperation Committee in Seoul on October 19, headed by HE Abdullah Bin Hamad Al Attiyah, the Chairman of Administrative Control and Transparency Authority from Qatar and HE Bahk Jaewan, the Minister of Strategy and Finance from Korea. Concrete action plans and strategies for all the sectors were discussed between senior government officials from both countries. It is expected that the bilateral relations between Korea and Qatar will be very sound under the strong commitment of the high-level leaders. We are also co-operating on major ‘climate change’ events such as the Global Green Growth Initiative, Pre-COP in Korea and COP18 in Qatar. Korea was selected as the host country of the secretariat of the Green Climate Fund. Can you elaborate on the trade relations between the two countries? The trade volume between two countries has been increasing from $12 billion (QR43.5 billion) in 2010 to $21 billion (QR76.5 billion) in 2011 to $17 billion (QR62
How much energy and related products does Korea import from Qatar? Qatar is the largest exporter of LNG to Korea, exporting over nine million tonnes of LNG from this year and meeting about a quarter of Korea’s LNG demand. Korea has collaborated with Qatar in its energy projects for a long time, starting in 1995, when KOGAS became a founding partner of RasGas and signed the first long-term agreement for the import of about five million tonnes of LNG. Qatar is the third largest exporter of oil to Korea. In 2011, the value of oil exports from Qatar touched $10 billion (QR36.4 billion). Korea is also dependant on Qatar for significant quantities of naptha, LPG and ammonia. Qatar is the largest LPG supplier to Korea and its export of Naptha touched $2 billion (QR7.3 billion) in 2011, LPG reached $1.5 billion (QR5.5 billion) and Ammonia was almost $100 million (QR364 million).
What investment opportunities does Korea offer for Qatar? Both countries are witnessing rapid economic growth and the GDP’s have grown quickly in the past few years. Korea is one of the leading economies in Asia and is competitive in the field of manufacturing, banking and technology. There are many worldclass real-estate and tourism projects in Korea that offer investment opportunities for Qatari investors. At the recent meeting of the High Level Strategic Consultation Committee, the Qatari government signed a cooperation agreement for investments between Qatar Holdings and Korea’s Ministry of Land, Transport and Maritime Affairs in the field of worldwide infrastructure projects. Combining Korean company’s technology and competitiveness with Qatar’s financial capacity would be a good way to promote investment between the two countries. We most welcome Qataris to invest in Korea’s developing trade-zones like Sae Mangeum Free Trade Zone and Incheon Free Trade Zone, where the Global Climate Fund headquarters will be opened
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How do you expect Qatar and Korea to take the relationship forward in future? In future, I expect excellent cooperation in the fields of energy and construction and hope to expand to scientific, cultural and academic fields. Korea initiated the Global Green Growth Institute, the Global ClimateFund and hosted the PreCop in Korea, and the COP18 held here in Doha. The relationship between Korea and Qatar is excellent in the field of green growth, sustainable development and climate change initiatives. In May 2012, the Korean government opened the Korea Business Centre in Doha under the umbrella of the Embassy. The Korea Business Centre will contribute to the bilateral cooperation in the field of small-and medium-size enterprises between our two countries. This committee will embrace all the aspects of national development and management. The issues discussed by the committee cover relations in energy, infrastructure and industry, construction, agriculture and food security, science and technology, security and national defence, health and medical science, culture and sports, trade and investment, and people-to-people exchange. We launched a comprehensive bilateral relationship scheme that requires all the government departments and the civil society to be involved.
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billion) for the opening nine months of the year. Main items imported from Korea are steel manufactures, vehicles and cables. The main export items to Korea are natural gas, crude oil and LPG. Korea is one of the biggest importers of Qatar’s natural gas. The most active sectors in Qatar for Korean companies are energy and construction. When it comes to the construction sector, from the building of the Sheraton Hotel in 1982 to recent projects such as the construction of the National Museum, Lusail City infrastructure & Hamad Medical City development, Korean companies such as Hyundai, SK, Samsung, Daewoo and GS have been actively involved. Additionally, in the petrochemicals and shipping sectors, projects such as the Laffan Refinery, Pearl GTL and the offshore Barzan Project are being done by Korean companies. Also, 54 of Qatar’s Mega LNG carriers were built and commissioned by Korean companies, including Daewoo, Samsung and Hyundai Heavy Industries. Korean companies like Samsung and LG have a big presence in the electronics and mobile phone markets in Qatar. Korean car manufacturers like Hyundai, Kia Motors and Ssangyong are also present in Qatar for quite a few years. Korean banks like Hana Bank, Woori Bank and Korea EximBank have also entered into partnershipswith major banks in Qatar. In addition to these, I can also see opportunities for further interaction in sectors such as medicine, ICT and hospitality.
qatar and the world
Japan enjoys close ties with Qatar Qatar and Japan have shared a deep relationship over the last 40 years. In an interview with Progress, HE Kenjiro Monji, the Japanese Ambassador talks about Qatar’s help postTSUNAMI, the strengthening relationship between the two countries and the scope for further expansion of ties.
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apan and Qatar established energy partnership in oil sector in 1970s, but it wasn’t until the 1990s that Japan really started to invest in the development of the LNG sector in Qatar. Despite the uncertain future of the LNG industry, Japan saw it as an opportunity and partnered to jointly develop the LNG industry in the country. Japanese electric power company, Chubu Electric, made a longterm LNG Sales and Purchase Agreement (SPA) and both public and private sectors of Japan participated in the project by providing finance, making investments, building plants and shipping the products.
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HE Kenjiro Monji Japanese Ambassador to Qatar
How have Japan and Qatar’s benefitted from Qatar’s massive energy investments in the last few years? How do the two countries propose to widen energy ties in future? Energy relations are still developing. Recently, a Japanese company was awarded Barzan projects as an EPC (energy, procurement and construction) contractor and several Japanese companies have been investing in gas refinery projects in Qatar. I strongly believe that Japanese companies can further contribute to the development of Qatar’s energy related industry. In 2011, Qatar provided 11% of the oil and 15% of the LNG in Japan’s import. The importance of Qatar as a major supplier of energy increased after the Great East Japan Earthquake, with an agreement of the additional supply of four million tonnes of LNG. The Government and people of Japan are truly grateful to Qatar for supporting Japan in its most difficult time. In 2012, three major Japanese Electric Power Companies signed new long-term SPAs with Qatargas. They are Tokyo Electric Power Company (TEPCO), Kansai Electric Power Company (KEPCO) and Chubu Electric Power Company. The import of LNG is expected to increase in the future under Japan’s new energy policy adopted after the nuclear power plant accident in 2011.
Visit of Minister of Foreign Affairs
January 8-9
Visit of the parliamentary friendship group between Japan and Qatar
January 12-14
Visit of Parliamentary Vice Minister for Land, Infrastructure, Transport and Tourism, and the Seminars on Infrastructure and Water
January 13-16
Reception to launch 40th anniversary year for resident Japanese
January 18
Participation to Doha Food Festival as an only Embassy
February 8-11
Murakami Takashi EGO Exhibition
February 8 - June 24
Wheels and Heels and the invitation of 40 school children from Japan
February 10
Japanese Drum ‘Wadaiko’ Performance at Katara by Eitetsu Hayashi
February 22-23
Lecture on Japanese Kimono and Traditional Dance by Mako Hattori
February 26-29
Photo Exhibition on Recovery from the Great East Japan Earthquake
March 11-24
Reception to commemorate the first anniversary of the Great East Japan Earthquake
March 13
Japanese Film Screening on the reconstruction after the Great East Japan Earthquake
March 11 and 25
Lecture on the Japanese Pop Culture
March 15
Japanese Cinema Showcase
March 29-30
Seminar on Japan’s Water and Wastewater Technologies
April 29-30
Japanese Speech Contest
June 16
Donations of Japanese Books to six educational and other institutions
May to Sept
Japan Cooperation Forum for the Middle East in Doha
August 26-28
Lecture on Harajuku Fashion and Costume Play
September 20
Introduction of Japanese Language /course at an Independant School
September
Japanese Music Project Colla boration with Arab musicians
October 12
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Japanese Dance and Music:Omnibus from Popular Theater Series
October 22-23
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Kimiko Yoshida Photo Exhibition
November 1 - December 1
Japanese Films at the 4th Doha Tribeca Film Festival
November 20, 24
23rd Doha International Book Fair; Japan as a guest of honour
December 12-22
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Qatar Japan 2012 events in Qatar
Japan had expressed its interest to diversify its ties with Qatar in various other fields such as defense, science and technology, education, sports, tourism and culture. What progress has been made in this regard? Japan and Qatar agreed to diversify their economic relations on a number of occasions. There have been many important political visits in both directions in 2012. We are working together in many areas of defense, including official staff talks between our two defense authorities; a port call at Doha Port by two Self Defense Force vessels in 2012; Japan’s participation in military exercises hosted by Qatar. In science and technology, the Mitsubishi group participated in the Qatar Science and Technology Park as the first Japanese company in 2012. The Japan School of Doha was reopened in 2009 after eight years of closure with the full support of the Government of Qatar. The Qatar Eastern Language Centre, the only private Japanese language school, was established in 2011, and Japanese was introduced in the curriculum of the independent schools as one of the second optional foreign languages by the Supreme Education Council in academic year 2012-2013. The most remarkable accomplishment in recent years was the launching
of the joint project ‘Qatar Japan 2012’’ to celebrate the 40th anniversary of Japan-Qatar diplomatic relations and I would like to express my gratitude to HE Sheikha Al Mayassa bin Hamad bin Khalifa Al-Thani, Chairperson of the Qatar Museum Authority, for taking the initiative. ‘Qatar Japan 2012’ contributed greatly to the promotion of ties between the two countries in culture as well as other areas. In Qatar, more than 30 Japanese related events were organised covering various facets of Japanese culture from the traditional ones such as drum, kimono, music and dance to more contemporary ones like Murakami Takashi. The Japanese Pop Culture such as anime, manga, fashion and music were some of the main features of the Japan booth at the Doha International Book Fair to which Japan was invited as a guest of honour. Qatar was promoted in Japan through various events organised by the Qatari side. The biggest event was Qatar Week in Tokyo in September 2012 with the participation of more than 20 Qatari organisations and institutions in the area of culture, economy and tourism. About 25,000 visitors enjoyed Qatari historical and traditional heritage and learned its business and commercial activities showcased at Qatari Cultural Village set up in the central Tokyo.
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The Ambassador of Japan participated in various cultural activities in Doha These events and activities attracted many tourists in both directions. However, more effort will be required to increase the number of Japanese visitors to Qatar. In this regard, Qatar Airways played a significant role with the launch of a new direct route to Tokyo in October 2012 which doubled the number of daily flights to Japan. What are the trade figures between the two countries? How many Japanese companies are there in Qatar? What role can Japanese companies play in the World Cup preparations? Japan has been a number one trading partner of Qatar and the total value of trade between the two countries reached $31 billion in 2011. The figure for 2012 will be much bigger due to the import of increased volume of LNG from Qatar. There are currently 39 Japanese companies in Qatar. I am convinced that the Japanese companies could contribute to the preparation for the World Cup in various infrastructure projects.
In what other segments are the two countries collaborating? There is a growing need for new desalination plants in Qatar. In order to promote cooperation in this area, the Government of Japan hosted two seminars on water and wastewater management technology in Qatar in January and April 2012. Major Japanese companies including Chiyoda Corporation, Hitachi Zosen Corporation, Marubeni Corporation, Mitsubishi Corporation and Mitsubishi Heavy Industries LTD., Mitsui & Co. LTD., Swing Corporation, and Yokogawa Electric Corporation participated at the seminar and made presentations on their technologies. Participating Qatari companies and organisations also gave their presentations about such topics as the technology options to respond to the water challenges, the outline of new legislation, the current status of waste water treatment and recycling in Qatar and the Qatar’s vision for food security
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Qatar announces a partnership with the Potsdam Institute for the creation of a climate change research institute (l-r): COP President HE Abdullah bin Hamad Al-Attiyah, Faisal Al Suwaidi and HH Sheikha Moza bint Nasser, both of the Qatar Foundation, UN Secretary General Ban Ki-moon, UNFCCC Executive Secretary Christiana Figueres, and Potsdam Institute for Climate Impact Research (PIK) Director Hans Joachim Schellnhuber
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atar’s efforts at achieving excellence in this arena are backed by three Research Institutes created by Qatar Foundation – the Qatar Energy and Environment Research Institute (QEERI), the Qatar Biomedical Research Institute (QBRI), and the Qatar Computing Research Institute (QCRI). Qatar Science and Technology Park (QSTP) is a tax-free centre for hi-tech international companies that wish to pursue research opportunities in the country. QSTP won the bid to host the 2014 International Association of Science Parks (IASP) World Conference. The deciding factor in choosing the venue was the integral role it plays in the wider dynamic scientific environment created by Qatar Foundation to support economic and human development in Qatar. It is considered a significant milestone in introducing Qatar as a nation on a path to an advanced society through science, research and education. This will be the first time an IASP World Conference is held in the Middle East. QSTP has been in the forefront in forging partnerships with international companies in the field of research. It recently announced collaboration with a leading Italian Research Institute, Polytechnic University of Torino that will focus on joint research projects related to sensors, software and hardware. It is also pursuing research partnerships with German companies. One project is looking at the possibility of making carbon fibre cheaper
than steel. QSTP houses at least four projects with a German stake. A new technology research centre was set up by Qatar Airways in partnership with Thales – a leader in In-Flight Entertainment and Connectivity (IFEC) systems. Set up within QSTP, this new technology research, development and training centre houses state-of-the-art IFEC equipment that supports software and application prototyping, content integration, system level testing and training. The TouchPMU was the first innovation conceived and developed by Thales and Qatar Airways and will be used commercially. Thales is expecting to expand the laboratory’s activities to encompass a wide spectrum of domains in support of its operations in the region. It is currently pursuing high profile opportunities in Qatar in the fields of defence, urban transportation, security, maritime, communications, and network applications. Carbon Storage Research Laboratory In a key development, QSTP in partnership with Shell and Qatar Petroleum opened the world’s largest suite of laboratories to research the storage of the greenhouse gas CO2 in carbonate rock formations. The laboratories represent a significant step forward in the development of Carbon Capture and Storage (CCS) as a solution to climate change, by helping to build knowledge that can be used to unlock the vast CO2 storage potential of carbonate
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The National Research Strategy was initiated to transform Qatar into an international centre for research and development excellence and innovation. It will improve the management of intellectual property resulting from Qatari research, help implement policies and guide investments. Progress looks at the efforts being made to make it a reality.
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journey towards innovation
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Qatar Science and Technology Park (QSTP)
reservoirs. Researchers at the laboratory will also analyse how liquids and gases move through carbonate rock to optimise oil and gas production. With more than 50 researchers, including PhD students from Qatar, this new venture will create one of the largest university-based CCS research teams in the world. The program will operate internationally in both Qatar and the UK over the coming years with the main site ultimately located in Qatar and hosted at QSTP, which will provide state-of-the-art equipment and facilities. RASAD and Loghati RASAD, the ICT platform developed by QSTP, is now commercially adopted not only in Qatar but also in the UK and Italy. RASAD is a remote patient monitoring system designed and implemented by QSTP and ASPETAR – the Gulf region’s first orthopaedic and sports medicine hospital. It uses wireless sensors to monitor a patient’s physiological status and health condition and can significantly improve an individual’s health and quality of life. The RASAD platform is currently in operation at the Al Ahli and ASPETAR hospitals in Doha where patients are being monitored as part of major cardiovascular and lifestyle studies respectively. Internationally, the RASAD platform has been commercially adopted by various European companies such as Harmoni, Rome City Council and Fondo di Assistenza Sanitaria Integrativa (FASI). QSTP signed an agreement with Harmoni – the leading inde-
pendent provider of out of hours healthcare in the UK – in May 2012, for the use of RASAD to remotely monitor patients with conditions that require regular medical observation, including those with chronic obstructive pulmonary diseases. In April 2012, QSTP clinched another deal with Fondo di Assistenza Sanitaria Integrativa (FASI), the largest insurance company in Italy and one of the largest in Europe, to use RASAD to complement the annual health screening of the executives in its system as part of an initiative to shift to preventative healthcare. RASAD was first adopted internationally by Rome City Council in 2011. It is currently using the tele-health tool to study health patterns in Rome that will help it develop better quality preventative medicine. The outcome of this study will facilitate prevention of lifestyle-related healthcare problems such as cardiovascular diseases. The ability to monitor multiple physiological variables makes RASAD an ideal technology to serve a variety of health and commercial applications from sport and fitness to monitoring serious health conditions and safety at work in extreme environments. Loghati, developed by QSTP is the second home-grown technology outside the energy sector to be commercialised internationally. It is an integrated system based on artificial intelligence. Loghati, which means ‘my language’ in Arabic, allows the creation of virtual libraries comprised of ancient and modern texts, where each document is a multi-dimensional information repository that can be accessed, amended and instantly translated
from Arabic into other languages and back. Loghati also has the ability to host audio and video content in its virtual library, creating a multimedia interface for knowledge previously unavailable to millions. The Polytechnic University of Torino will use Loghati to provide its multicultural student community with e-support to access the content of lectures. The Universita Orientale Napoli will use it to digitise and translate an archive of manuscripts on Arab culture and innovation. The European Centre for Study on Normans (CESN) will utilise Loghati to facilitate research studies on the history of the Normans and their relationships with the Arab world. Other projects Qatar Robotic Research Centre has added two more research projects to the 10 already underway. The projects worth $2 million (QR7.3 million) will be funded by the Qatar National Research Fund (QNRF) and will focus on surgical simulation. The research breakthrough will have applications in cancer and brain surgery and interventional radiology. QRRC, a partnership between QSTP and Hamad Medical Corporation (HMC), aims to improve patient care through research and technology development in three interconnected areas: surgery simulation, image-guided navigation and advanced robotic instrumentation. It aims to transform Qatar into a hub for robotic surgery and is currently engaged in developing assistive technology for the vi-
sually impaired, multi-cultural human-robot interaction, visual mapping algorithms for oil and gas pipe inspection and for autonomous industrial robots, multirobot algorithms for disaster response, and assistive technology for diabetics. In March 2012, QF, in partnership with HMC, agreed to pursue stem cell research that could possibly prevent cancer. A leading European cancer research institute will also be partnering on the research programme. QEERI, a member of Qatar Foundation, in partnership with the Spanish Research Centre for Energy Environment and Technology (CIEMAT) is focussing on renewable energy research projects in Qatar. The key focus is on developing solar-powered desalination systems. Hawa’ak and Kotobi have been developed by Qatar University’s Wireless Innovation Centre (QUWIC). Hawa’ak is an air quality monitoring solution that utilises low cost mobile sensors right across Qatar. The result is a cost-effective yet highly accurate real-time air quality monitoring system that produces data that can be easily personalised through various applications. Kotobi is a digital library for Arabic and English e-content in the form of digital books, magazines and periodicals. It enables residents of Qatar to select, purchase and download Arabic and English e-content for their mobiles and tablet devices. Many more innovations are being pursued at universities and research centres across the country. With a research strategy in place, the country’s research initiatives get a further boost
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The Qatar Science and Technology Park (QSTP) team at the 29th International Association of Science Parks (IASP) World Conference in Tallinn, Estonia
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Cultivating the Private Sector
The Qatar Government is encouraging its people to stand on their own feet and contribute to the economy rather than depend on it to provide for them. This change in mindset is supported by many organisations whose mandate is to assist these individuals to get the resources they need To run sustainable private businesses.
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rganisations, such as Enterprise Qatar (EQ), Qatar Development Bank (QDB) and Silatech, are playing a role in creating an eco-system for the development of the private sector by helping them in every possible way, whether it is access to finance, consultancy, networking or
counseling. According to a KPMG study, Qatar’s small- and medium-sized enterprises (SMEs) sector has contributed 28% to the economy and over half of these are planning to increase their capital expenditure. The construction segment together with the current initiatives to create a conducive environment is expected to spur growth of SME’s in the next three to five years. At the launch of KPMG’s Owner Managed Business Group to serve the SME segment, Christopher Bernard, partner and head of middle markets for KPMG’s Europe and Middle East said: “SME business confidence in Qatar reflects an extremely positive environment for business growth. Over half of the SMEs across the MENA region are looking to expand internationally ensuring that
growth remains sustainable in the longer term. The growing importance of trade with emerging markets is also an important factor driving SMEs to consider international business as a revenue generator.” He added: “As Qatar redoubles its efforts to foster sustainable job creation and diversification, entrepreneurship is presenting itself as an increasingly pressing priority. There is scope for vitality and innovation. New policies and institutions are required to unleash the entrepreneurial activity. Regulatory support to offer and incentivise advice and assistance to SMEs is likely to pay significant dividends.” In light of the budding entrepreneurial wave in the country, we look at some of the initiatives aimed at nurturing entrepreneurial talent in the country and institutions that support the private sector. Al Dhameen Addressing the needs of Qatar, QDB, originally a bank with predominantly industrial focus, reinvented itself in 2006 to focus on
hensive risk cover mechanisms like pre-shipment and postshipment cover, credit risk and export credit cover guarantees. Pre- and post-shipment covers protect exporters against events beyond their control such as insolvency, political unrest and contract violation. Tasdeer encourages Qatari businessmen to participate in business-related industry events and exhibitions held globally by bearing the costs of fully built-up stands, cost of sending the samples/exhibits, travel and hotel costs. According to QDBs annual report for the year 2011, in the first year of its operations, Tasdeer enabled nine companies to export their products to 14 countries in Asia, Africa, Europe and Australia and approved 86 cover policies valued at QR107.75 million. The Bedaya Centre is an initiative jointly launched by QDB and Silatech. Bedaya guides an entrepreneur through his entire journey-from conception to commercialisation. The advisors at Bedaya help young Arabs to identify a business opportunity, draw a business plan, develop a product, arrange finance and market it. It offers complete solutions to SMEs. Tamheed from Silatech is an online psychometric assessment tool that helps identify a person’s main interests, skills, personality traits and ambitions. The assessment helps identify entrepreneurial abilities and skills and channelise accordingly. Bedaya also holds various events at regular intervals to help develop soft-skills, promote innovation and network opportunities. Silatech Silatech is a Qatari social enterprise established by Qatar Foun-
private sector & diversification
promoting the private sector. It was backed by the government with extra capital of QR10 billion. Its mandate was to support the development of the private sector by providing financing solutions, value-added services and facilitate expansion abroad. The bank encourages budding entrepreneurs by providing comprehensive advice and assistance in formulating business plans and identifying markets. It also supplies the private sector with the latest business insights, interactive tools and educational resources, through tools like the ‘SME Toolkit’. The competitive interest rates and terms, and extended repayment periods are some advantages offered by QDB. Some notable initiatives are ‘Al Dhameen’-a bank guarantee scheme; Tasdeer-an export promotion organisation to help Qataris with international ambitions; and the Bedaya Centre – a venture promoted by QDB and Silatech. QDB also offers subsidised loan at an interest rate of 1% for specific businesses such as fisheries and farming. Al Dhameen is a bank guarantee scheme where QDB provides a guarantee to the lending bank for up to 85% of the loan granted to an SME not exceeding QR15 million. This transfers the risk on the loans extended from the banks to QDB and encourages banks to lend to new businesses filling the need for start-up finance. Tasdeer is an Export Development Agency that supports and promotes Qatari businesses abroad. Tasdeer provides exporters access to expert financial and advisory services and protects businesses from foreign trade risks. Tasdeer offers compre-
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Noora Al Mannai, CEO, Enterprise Qatar
New identity to oldest business community
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atar’s industrial body, Qatar Chamber of Commerce and Industry is now ‘Qatar Chamber’. The new name is complemented by a multi-layered crescents logo, forming the letter ‘Q’ in a dynamic wave. The icon is the symbol of the Chamber’s Arab heritage, signifying the tides of growth lapping at Qatar’s shores. The new corporate identity complements Qatar Chamber’s efforts to help businesses in Qatar especially small-to-medium enterprises (SMEs), and the local private sector through knowledge transfer, counselling and research. The Chamber’s services would extend to sports and green investments, and creating cutting-edge electronic networking systems to allow Business-to-Business (B2B) networking locally and across borders. A first for the Middle East, the Qatar Chamber will be hosting the 8th World Chambers Congress (8th WCC) in Qatar during April 22-25, 2013. The World Chambers Congress connects business delegates across the world to local businessmen and provides a platform to gain critical insight on trade and investment. QNB Group,ExxonMobil, Commercialbank and Barwa Bank have also signed up to become sponsors of the Congress, which is expected to bring chamber and business leaders from more than 100 countries.
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dation to help Arab youth across the region to own small businesses. Silatech provides various services such as microfinance, educational resources and career guidance. In Qatar, it has partnered with institutions such as Enterprise Qatar and QDB to create an entrepreneurial ecosystem. Silatech has launched a number of initiatives and products tailored to suit the needs of an entrepreneur. It recently launched the country’s first business angel network SILA. SILA aims to connect angel investors with start-up entrepreneurs by offering opportunities for interaction and personal mentoring at a series of regular events. In addition, SILA will provide training programmes for both potential angel investors as well as aspiring young entrepreneurs. Enterprise Qatar (EQ) EQ was created with an aim to be the focal point for entrepreneurship development in Qatar. The origination will chart out the path and monitor the progress achieved in creating an entrepreneurial environment. Its mandate is to nurture SMEs at all stages of the business life cycle, provide the means to strengthen supply chain networks, foster an environment for growth and provide educational assistance for achieving this. It addresses issues such as business support services, debt financing, equity financing, learning and development, research and strategy. EQ is actively developing strategic partnerships with globally recognised international think tanks, institutes, private sector organisations, investment bodies and other related entities to co-explore opportunities and develop mutually beneficial economic, market research and project proposals to support the mandates and objectives of the organisation. Its recently launched ‘SME Evolution Programme ‘aims to support SMEs in Qatar to improve their capabilities in various areas such as management, business development, human resources, and online marketing.
Other initiatives To help SME’s raise finance easily from the market, Qatar Exchange (QE) is developing a separate junior market for SMEs. Keeping their small size and cost barriers in mind, listing fees and disclosure requirements are relaxed. QE has been conducting workshops and awareness exercises to promote the junior market. SME’s from across the GCC will be allowed to list on QE. The Qatari Businesswomen’s Association (QBWA) aims to provide a platform for businesswomen in Qatar to interact, collaborate and share experiences and network. The QBWA was part of various events like the Inside Investor Forum Asia 2012 and The MENA Businesswomen’s Network (MENA BWN) Forum during the year. The Qatari Businesswomen Association opened its membership to companies and institutions operating in the country last January, after it was limited only to individuals. Recognising the accomplishments of Qatari women, the association awarded eight Qatari Women for their achievements in selected criteria. The Qatar Businessman’s Association (QBA) represents the interests of the local business community. It liaises with the Government and various international trade associations to promote business interests of its members. The QBA organises events, conferences, seminars and activities to share macro-economic and industrial developments. The QBA has partnerships with various international and regional trade and business associations such as the Korea International Trade Association and The German Industry and Commerce to strengthen business ties and promote commercial interests. Despite all the initiatives and support offered, the main challenge is to motivate Qatari’s to quit their high paying government jobs and take the plunge into entrepreneurship. The private sectors contribution is still small but expected to grow in future
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he SDC offers extensive services which include family support, guidance and career training programmes. It also offers interest-free loans to deserving families of natural disasters and initiate awareness programmes through campaigns of various sorts. It commits to organising social awareness programmes and campaigns to introduce Qatari citizens and foreigners to the social ethical values that enable them to help and serve their society. As part of its social services, the SDC supports families that suffer as a result of social challenges due to disunity and instability. Under this banner, the SDC also organises activities, programmes, and services that can alleviate the suffering of families. It opens cooperation and coordination channels with all ministries, institutions, and companies in Qatar to provide people with job opportunities. The SDC believes the best way to influence society and become productive is through training: “Our Professional Training and Development Division offers various programmes that help prepare individuals technically for their professional lives and to
assume their roles in the labour market.” Training programmes at the SDC focus on society so that individuals are developed in a professional way, compatible with the labour market requirements. By 2030, Qatar aims to be an advanced society capable of sustaining its development and providing a high standard of living for its entire people. Qatar’s National Vision (QNV) 2030 defines the long-term outcomes for the country and provides a framework within which national strategies and implementation plans can be developed. Four pillars make up the framework of the national vision and one such pillar is Social Development. The Social Development structure encompasses a system dedicated to social welfare and protection for all citizens and to bolstering women’s role in society and empowering them to be active community members. Social advancement also means equal educational, employment and career opportunities for all citizens, regardless of their background or gender and a tolerant and fair society that embraces Islam’s values of peace, welfare, justice and community. Under the vision, Qatar will serve as a regional and global example with an increased role in the Mid-
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The Social Development Centre (SDC) has come a long way since its inception in 1996. A non-profit, social and development organisation, it is a member of Qatar Foundation for Education, Science, and Community Development as well as the Arab NGO Network, the World Family Organisation and the United Nations Economic and Social Council.
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Social Awareness at the heart of society
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“Our mission is to turn attention back to the disadvantaged children of today, who could become the confident and talented adults of tomorrow, if we just give them the opportunity.” Her Highness Sheikha Moza bint Nasser
dle East and the world. The framework of Social Development is broken into three sub-sections: Social Care and Protection Strong cohesive families that care for their members, and maintain moral and religious values and humanitarian ideals. An effective social protection system for all Qataris that ensures their civil rights, values their contribution in developing their society, and ensures an adequate income to maintain a healthy and dignified life Sound Social Structure Effective public institutions and strong and active civil society organizations that: Preserve Qatar’s national heritage and enhance Arab and Islamic values and identity Provide high quality services that respond to the needs and the desires of individuals and businesses Establish a secure and stable society operating on the principles of justice, equality and the rule of law Enhance women’s capacities and empower them to partici-
pate fully in the political and economic spheres, especially in decision-making roles Develop a spirit of tolerance, constructive dialogue and openness towards others at the national and international levels International Cooperation Qatar will continue to build upon its role in the international community in the following areas: An increased regional role economically, politically and culturally, particularly within the framework of the Gulf Cooperation Council, the Arab League and the Organization of Islamic Conference Intensification of cultural exchange with the Arab people in particular and with other nations in general Sponsorship and support of dialogue among civilizations, promoting co-existence between different religions and cultures Contribution towards international peace and security through political initiatives and developmental and humanitarian assistance
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Through education Qatar seeks to go beyond preparing citizens to be part of the country’s economic engine. It should provide a solid grounding in religious, moral and ethical values, national identity, traditions and cultural heritage. The National Development Strategy 2011-2016 aims to introduce education programmes that equip young Qatari people with the skills and motivation to contribute to society.
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atar has a comprehensive educational policy that has been developed on solid bases: adherence to the heritage of the Islamic nation and its moderate character; a commitment to the development of educational curricula and systems; and constantly endeavor to benefit from modern and technological achievements and new educational experiments. Educational development has accelerated to involve both men and women in every community in the country at all educational levels up to university. Qatar’s aim is to equip its citizens with the skills and knowledge to provide strong competitive growth in the global environment. It is becoming an education-hub in the Middle East and beyond through state-funded initiatives to reform its internal educational system combined with incentives to attract top calibre international institutions to the country. The government’s initiative to encourage and promote education in Qatar under the slogan ‘Education for A New Era’ is aimed to provide the best for Qataris, in order to prepare them to meet the needs of economic and social development. Qatar supports the establishment of private educational institutions of various kinds and provides continuous support in legal and supervision aspects. Educational provisions In marked contrast to the situation a generation ago, basic schooling of Qataris is now universal and literacy rates for those ages 15-24 are close to 100%. Despite some improvements, the
quality of primary, preparatory and secondary education does not yet meet international standards, especially in mathematics and science. More emphasis is needed on the attainment of soft skills such as analytical thinking and teamwork, which will enhance the ability of young Qataris to find employment. While school enrolments have increased substantially up to the secondary level, tertiary enrolment rates could be much higher, especially among men. Children of the growing number of non-Qataris constitute the majority of students at all levels of education. The growth in the number of children of non-Qataris has been accompanied by a substantial increase in private international and community schools. More and more Qatari parents are sending their children to international schools, and thus Qatari children are increasingly mixing with their peers from a diverse group of countries and cultural backgrounds. This interaction provides them with opportunities to establish friendships with and share learning experiences in culturally diverse school settings; however, it also poses challenges to traditional value systems. These may be partially overcome with the mandatory teaching of Arabic, religious studies and civic education. Qatar’s education system entails six years of primary schooling (commencing at age 6), followed by three years at the preparatory stage and three years of secondary schooling; the first nine years are compulsory. After secondary school, several pathways are available for post-secondary education. For Qatari children, as well as for children of non-Qataris working in the public sec-
“In Qatar, I fail to differentiate between gender because my gender has never stopped me from achieving my plans. Qatari women have, and will continue to play, a crucial role in developing our nation.”
Improvement in quality Qatar has retained its fourth position among 142 countries around the world in the quality of the education system, according to the latest Global Competitiveness Report 2012-13 issued by the World Economic Forum. Its education sector has
witnessed great strides in all areas, and after the complete transformation to Independent school system it has started providing education at par with international standards, which has enabled students to enroll in some of the best universities around the world. The standard of primary education was ranked 10th in the world, advancing from 12th in 2011. Meanwhile, the availability of Internet in schools increased from 7th in 2011 to 10th this year. Many of the positive indicators included in the report have been achieved by the educational system of Qatar. The report will form the basis for policy and strategic planning in future for success in several educational aspects of the country. The SEC has expressed satisfaction about the encouraging report and recognised the vital role of the license owners of the schools in helping achieve high standards on par with other scientifically advanced countries. Investment in education The establishment of a world-class education and training system is a major goal of Qatar’s National Vision 2030’s Human Development pillar and is intended to support Qatar’s transition from a resource-dependent economy to a diversified knowledge economy. In recent years, Qatar’s education system has benefited greatly from increased revenues. Substantial resources have been allocated to improving infrastructure, as well as to the human, material and organisational inputs into the education system. Expenditure on education accounted for around 4.1% of GDP in 2009/2010, which is in line with the Organisation for Economic Co-operation and Development (OECD) average and is comparable to other high-spending GCC countries. While overall government expenditure increased six-fold over the period 2000-2010, that on education increased nine-fold, accounting for 13% of total government expenditure in 2009/2010. In 2009/2010, around 47% of Qatar’s education expenditure went to capital investment, whereas in most OECD countries
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tor, primary and secondary education is free. Public schools provide additional support for students with special needs and learning difficulties, as well as for those with behaviour that adversely affects their schooling. In addition to compulsory schooling, there has been a rapid growth in pre-primary kindergarten education in support of early childhood development, since the start of the Education for a New Era reforms that began almost a decade ago. The uptrend in kindergarten education has been driven by private providers, which in 2009/2010 accounted for some 80% of total enrolments. However, kindergarten schooling is not mandatory, and not all Qatari children attend, despite it being free. Those who do not attend, currently more than half, are less well prepared for entry to primary school. There is considerable international evidence that suggest that preschool enhances children’s future learning ability. In addition to the public and private provision of kindergarten and basic education, Qatar Foundation offers outstanding education to cover all grades from kindergarten up to secondary school. For example, the Awsaj Institute of Education aims to raise the educational performance of students with learning challenges, engages in partnerships with stakeholders to develop the potential and abilities of students, and develops and promotes the application and assessment tools, teaching methods and curricula for effective teaching professionals. The Awsaj Institute includes two entities: the Awsaj Academy, a school for K-12 students who face academic difficulties, and the Awsaj Centre of Teaching and Learning, which offers specialised services for students who need more individual attention and provides professional development for teachers.
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HE Sheikha Mayassa bint Hamad Al-Thani at UNFCCC’s first-ever Gender Day,
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Dr Madav Chavan, this year’s WISE prize winner collects his award from HH The Emir Sheikh Hamad bin Khalifa Al-Thani
the corresponding proportion was much lower, with salaries accounting for 80-85% of total expenditure. Qatar’s higher capital expenditure reflects the demand for increased infrastructure development in a period of rapid population growth of the schoolgoing population. It also reflects the government’s strategy of investing in best practice models of education. Total expenditure per student including public (79%) and private (21%) expenditure for all schools in 2009/2010 was estimated at QR24,500 for primary education, QR30,500 for preparatory and QR39,000 for secondary. While the value for secondary education is 15% higher than the OECD average, that for primary and preparatory schooling is 1-5% less.
Collaboration for change The World Innovation Summit for Education (WISE) convened for its fourth annual Summit in Doha in November with a theme of ‘Collaborating for Change’. More than 1,000 prominent education, corporate, political and social leaders from over 100 countries gathered for the Summit at the Qatar National Convention Centre in Doha to explore how collaboration in many forms and at many levels can become the driving force of efforts to inspire innovation in education and to design long-term strategies for its renewal. Dr Madav Chavan, this year’s WISE prize winner addressing the closing of the summit, urged all sectors to start working together to educate children. “It’s taking too long, it’s time we work together and get it done; we can’t leave it for the future,” he said. He said that the education provided for children should help them to build them wisdom, besides increasing knowledge: “Education is not knowledge and skills, it’s about wisdom, which is lacking and it doesn’t come from knowledge and skills.” The highlight of the three-day WISE summit was the launch of ‘Educate a Child’ initiative by HH Sheikha Moza bint Nasser, while the Chairman of WISE, Dr Abdullah bin Ali Al-Thani, in his closing remarks, extended the fullest support for the initiative. “Bringing all children to school is the aim of ‘Educate a Child’; WSIE will do everything within its power to support achieve the goal,” Dr Al-Thani said. Meanwhile, HH Sheikha Moza joined UN Secretary General Ban Ki-moon at the launch of his new initiative to make education a top global priority and boost progress towards the Millennium Development Goals on education. Speaking at the Education First initiative held on the sidelines of the 67th Session of the UN General Assembly in New York in September, HH Sheikha Moza said: “The world is coming together to put education back in its rightful place on the agenda - first. Yes we will need funds, yes we will need resources, but most of all we need real understanding, genuine resolve, and action.” The initiative aims to tackle the global challenge of 61mn children receiving no education at all. Almost half of these live in conflict zones or fragile states. HH Sheikha Moza will take an advisory role to Ban Ki-moon on the Steering Committee of Education First, drawing on her experience as a UNESCO special envoy for basic and higher education and as her role as Millennium Development Goals Advocate for education. “The loss of an education is a real and life-threatening tragedy to the victims whose voices right now are simply not being heard. It can mean the loss of a future,” Sheikha Moza said. “It is the most vicious of circles. No education means no job, no job means no income, and no income means no education. Destroying education in a conflict zone destroys a society’s chances of recovery. We know that children deprived of an education in conflict zones are far more likely to be drafted into armies or militias of one type or another. This is the logic of violence at its simplest, at its most brutal.”
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Educating Nursing Leaders With a vision to “enrich health and wellness in Qatar and the Gulf region through world-class education of nursing leaders and practitioners”, the University of Calgary - Qatar (UCQ) has grown from strength to strength.
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perational since 2005 with a batch of only six students, today the University has found significant success with about 300 students enrolled in various courses, prestigious monetary grants being awarded, and world-class research programmes. Progress spoke to Dr Kim Critchley, PhD, RN, University of Calgary - Qatar to understand the journey of the University’s growth. Give us a brief recap of the University’s journey into Qatar. UCQ, which is a branch campus of the University of Calgary in Canada, has been in operation since 2005. The original students entering the four-year Bachelor of Nursing programme were from the Pre-Nursing Programme at the College of the North Atlantic-Qatar. In 2007, the first intake of six students began and, through the sponsorship of students, by September 2011 UCQ had 180 students enrolled in its programmes. Currently, UCQ has approximately 300 students enrolled. In February 2011, UCQ received accreditation from the Canadian Association of Schools of Nursing.
While undergraduate nursing education has been the top priority for faculty at UCQ, faculty members began submitting proposals to the Undergraduate Research Experience Programme (UREP) and to the National Priorities Research Programme (NPRP) in 2010. We have had significant success in securing funding from both these funding agencies. In total, we have been awarded over $2.5 million in research grants from the Qatar National Research Fund (QNRF). With the Master of Nursing programme starting in January 2013, it is expected that research funding will continue to increase. Funding from the State of Qatar has been generous and has supported the growth of the programmes. We work closely with and are supported by Dr Latifa Al Houty, Director of the College of Nursing Project, who directs the programme on behalf of the State; and Dr FathySaoud, President of Qatar Foundation and Chair of the Joint Oversight Board. Growth in faculty and staff numbers has continued since the initial days of UCQ. What programmes are on offer at the moment and what
Are there any student exchange programmes in place, or will there be any in the future? At this point we have students from the University of Calgary completing a one-month clinical practicum at the Heart Hospital. We had three students in September, one in October and two more will come in November. They are here under the supervision of a clinical instructor from Calgary as well. The opportunity for student exchange is part of the Comprehensive Agreement between the University of Calgary and the State of
Qatar. It is our goal that student exchange opportunities will continue to grow with students from Qatar also completing clinical training in Canada. What is the university’s objective in Qatar, and on a global platform? The vision of UCQ is to enrich health and wellness in Qatar and the Gulf region through world-class education of nursing leaders and practitioners. We want to educate nurses who will become renowned for excellence in practice. We want to prepare nurse leaders who will contribute to the development of an emerging healthcare system here in Qatar. We want our faculty and students to participate in research and educational initiatives that will contribute to the health and wellness of Qatar residents. In line with Qatar’s National Vision 2030, how is the University contributing to the education and health sectors? UQC has four strategic priorities that are well aligned with Qatar’s National Vision 2030. To grow strategically in student numbers, programme development, research and faculty To strengthen identity and partnerships and increase the profile of nursing in Qatar and in the Gulf region To deliver a quality learning experience based on Canadian standards To continue to improve organisational capacity by having motivated, committed and competent faculty and staff at all programme levels
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programmes have been planned for the near future, if any? Currently, UCQ offers a high-level foundation programme for all students needing extra assistance in English, math, biology and chemistry. We are finding that in order for students to be successful in the nursing programme, they need a strong foundation in these courses. The support continues for the students throughout their nursing programme. We offer a four-year university degree in Nursing, which includes both a regular track (admission from high school) and a post-diploma programme for nurses who have a diploma in nursing and now want to complete a nursing degree. At this time we have approximately 300 students enrolled across these two programmes. At the request of Hamad Medical Center and the State of Qatar, we will be implementing a three-year diploma programme in January. This is being done in response to the nursing shortage currently in Qatar. Fifty students will be admitted in January into the degree and diploma programmes. One hundred students are admitted in September into the degree and diploma programmes. As well, we are starting a Master of Nursing programme in the area of Oncology in line with the National Cancer Strategy for Qatar. Nine students will initially be enrolled in this twoyear programme in January.
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UCQ has been awarded over $2.5 million in research grants from the Qatar National Research Fund
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building corporate competitiveness
HEC Paris joined Qatar Foundation in June 2010, bringing world-class Executive Education programmes and research activity to Doha and the region. Qatar’s first international Executive MBA was launched by HEC Paris in Qatar in February 2011.
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he HEC Executive MBA (EMBA) is a part-time programme which provides executives with a set of fundamental skills to expand their knowledge and leadership capabilities. The course is taught in English and is offered in five different locations, including Doha. In addition to the EMBA, HEC Paris in Qatar provides a Specialised Master’s Degree in Strategic Business Unit Management, which is also a part-time programme in Doha. This course will be launched in March 2013. The objectives of the programme are fourfold: to create effective leaders of business units; to develop management acumen; to enhance leadership and people management skills, and to foster a genuinely entrepreneurial approach to management. This degree is aimed at professionals with a minimum age of 25, a four-year University degree (or equivalent) from a recognised seat of learning, and at least three years’ work experience. Typically, the participant will be a manager responsible for
a business unit or profit centre, or one who is likely to occupy this role in the near future. The new programme will be followed on a part-time basis over 18 months and takes the form of 14 three-day modules representing a total of approximately 370 hours of teaching. The institution also offers non-degree management programmes for executives, in the form of open enrolment programmes as well as custom-designed programmes for individual companies. HEC Paris in Qatar’s programmes and research activities build corporate competitiveness within the global economy and are fully aligned with Qatar’s National Vision 2030 to support the transformation of Qatar into an advanced, competitive and knowledge-based economy. HEC Paris has been ranked the number one business school in Europe since 2006 and the second best worldwide for Executive Education by the Financial Times in 2012
HH The Emir Sheikh Hamad bin Khalifa Al-Thani cuts the ribbon, marking the opening of Al Wakra Hospital
Qatar’s healthcare sector boasts advanced medical equipment and highly qualified staff, a countrywide network of hospitals and healthcare centres, as well as a cardiology department that is referred to by outside specialists as ‘one of the best in the world’. According to a report from the general secretariat of the GCC ministers of health, Qatar HAS the region’s lowest maternal mortality rate.
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Towards A Healthy Nation
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ack in October 1957, Rumaillah Hospital opened as a 200-bed general hospital with ambulance services and a large outpatient facility. With the years, as the population’s medical needs grew, the country decided that something had to be done and Hamad Medical Corporation (HMC) was born to provide state-of the-art diagnosis and treatment of diseases. Since its establishment in October 1979, HMC has become Qatar’s leading non-profit healthcare provider through its network of Primary Health Care Centres and four highly specialised hospitals in Doha. At these HMC facilities, medical and dental treatment is free for Qataris and heavily subsidised for expatriates. Residents and visitors are required to apply for a QR100 health card, which allows them to pay small charges for various tests and consultations as well as a nominal fee for inpatient care. Besides HMC, the Qatari government has also encouraged the private sector to play a greater role in providing healthcare to the public. The country’s first private hospital opened in late 1999, and private practices and clinics (both medical and dental) now offer a full range of medical services, from rheumatology and dermatology to reflexology and home nursing care. Laws governing private practice are strict, and licensing by the Ministry of
Public Health – which oversees all health services in the country – is mandatory for all establishments and each of their medical and nursing staff. However, private medical service facilities have expanded to represent 67% of the country’s health services providers, helping to ease the burden on HMC and the Primary Health Care Centres. Becoming a world model The Supreme Council of Health (SCH) believes that Qatar has an opportunity to create a system that will provide the most effective and advanced healthcare to its people and become a model for the world to follow. The heart of Qatar’s strategic vision for the future is helping people achieve their full potential, thereby benefiting the individuals, their families, the community and the nation. Currently, the SCH is embarking on an ambitious programme to enhance the wellness of the people of Qatar so that a vibrant, healthy, and productive society can be established for today and for the future. The essence of this programme is ‘Caring for the Future’ which means promoting public health, encouraging healthy lifestyles, providing community-based primary care, and ensuring that, when needed, some of the world’s most advanced and highest quality care is available in its medical facilities. These
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Ms Monira Mollazehi, Trauma Database Administrator; Dr Hassan Al-Thani, Head of the Trauma Centre; and Ms Holly Ann Hepp, Trauma Programme Manager at HGH.
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tertiary facilities will not only provide quality care but also are expected to be research leaders on the frontiers of science. The SCH will oversee and regulate the medical marketplace, promoting high quality care through use of the latest information technology and support of a healthcare financing programme that provides access to all while establishing incentives for good resource stewardship. It will promote evidence-based policies that seek to improve the health and wellbeing of individuals and their families, and will measure change against established objectives to be certain progress is being achieved. Redefining goals The SCH is redefining the timeline set for achieving the goals and objectives of the National Health Strategy (NHS 20112016) which was launched to ensure the delivery of world-class healthcare in Qatar through three core areas of healthcare delivery; workforce integration and quality; and policy regulation and research. The NHS’ five-year programme spans some 35 different projects, which are being increased to around 40 and across seven different goals. The goals of the strategy were to build a comprehensive world-class healthcare system; integrate the system of health care for patients to benefit from its cohesiveness; develop a skilled national workforce; to strengthen national health policy; increase access to affordable services; and support quality research that broadens Qatar’s existing focus on biomedical topics to embrace public health and policy projects. “We were sure that we will have to revise the timeline set for achieving the strategy when we were preparing it because of the projects’ co-dependency and in terms of readiness of different providers and also to have proper assessment of the strategy in the long run,” said Dr Faleh Mohamed Hussain Ali, SCH’s As-
sistant General Secretary for Policy Affairs. “Now, we are realigning the timeline to be more realistic in achieving the goals at the end of the five years of the different projects. So, hopefully by September-October, we will have a much better picture and we will have a better time-line.” He explained that due to the inevitability of redefining the projects’ timeline, an additional number of projects needed to be added to the lots. “We have redefined more public health projects, now we are adding... and it is already approved, to have a laboratory strategy, that is, to do the coordination of all laboratory services around the country and we are planning to expand that to include training and research.” Dr Ali said that some 90% of the projects were already rolling on while admitting that about 10% was still waiting due to their co-dependency and while some were behind schedule by between 5-10% of the time-line. Trauma care Qatar is one of the first countries outside the US to establish a complete trauma system to address the growing number of people falling victim to serious injury, occurring mostly on the road and at work. The Trauma Centre is moving closer to verification as Level 1 through its participation in the US National Trauma Data Bank (NTDB). With this achievement, Hamad Hospital becomes the first outside the US to contribute to the NTDB and aspires to achieve accreditation by the American College of Surgeons as a Level 1 Trauma Centre. A World Health Organisation (WHO) report in 2011 stated that Qatar had one of the highest road traffic death rates in the region at 19 deaths per 100,000 population while falls, mostly occurring on construction worksites, were cited as the second most common cause of death and permanent disability.
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HH Sheikha Moza bint Nasser led the way for future generations by registering as a organ donar at the Qatar Organ Donation Center at Hamad Medical Corporation
Based at HMC, the Trauma Centre currently receives and evaluates more than 5,300 patients each year, of which approximately 3,000 are admitted to the hospital for care. The centre has developed various protocols, with each trauma patient being cared for by a dedicated multi-disciplinary team of healthcare professionals who collaborate closely to provide the best possible care. Earlier this year, the Trauma Centre earned recognition in the Arab Health Awards and the WHO for its success in improving care for the injured in Qatar. “Having a trauma system elevates the care of patients in every service in the hospital, not just for trauma. Published evidence shows that hospitals with a Level 1 Trauma Centre have lower morbidity and mortality across the board in their services and provide better care for their patients,” said Trauma Centre head Dr Hassan Al-Thani. He explained that the Trauma Programme in Qatar is one of the best in the Middle East because it is structured, integrated and functions on the basis of collaboration. “Trauma care is a real continuum process that does not stop until the patient is returned fully functional back to their place in society and many professionals contribute to this,” he noted. Transforming emergency services A team of internationally-renowned experts have been appointed to transform emergency services across all of HMC’s hospitals in Qatar. Professor Peter Cameron will lead a new multi-disciplinary team that is tasked with transforming emergency services in the country’s hospitals.
HMC Managing Director Dr Hanan Al-Kuwari, who made the appointments, said the new step was part of a wider strategy of becoming an Academic Health System dedicated to providing high quality clinical care, “Training future generations of doctors and health professionals and developing research that is relevant to the health and well being of our population.” Some of their achievements include: 87% of patients arriving at the emergency department are now discharged in under four hours, meeting international best practice standards; better management has dramatically reduced the number of cancelled operations: latest data shows a fall of over 80% in urgent cancellations since January; waits for a bed in the recovery room following surgery are now almost a thing of the past: the number of patients waiting has reduced from around eight per day at the end of February to zero on most days; overnight waits for admission to an inpatient bed have seen a dramatic reduction of 70%; there have been significant upgrades to the facilities in order to help provide the best possible care to patients: a new Female See and Treat facility is now in place, and the trauma, isolation and VIP rooms are all now state of the art. Meanwhile, construction work on an integrated hospital for infectious diseases is underway at the HMC and it is expected to be ready by 2014. The new hospital will house the National Tuberculosis programme as well as clinics that look after those infected by TB.T In addition, the new 65-bedded hospital will replace the existing facility at the Rumailah Complex and have an in-patient unit as well as other facilities needed to treat TB successfully.
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ith Qatar’s expected future growth, the government has introduced important legislative changes, including the launch of the Qatar Construction Standards 2010 (QCS 2010), which supersede the Qatar National Construction Standards 2007 (QCS 2007). The QCS 2010 introduces a new Green Building Code that puts sustainable development high on Qatar’s agenda in the construction industry. Moving to sustainable construction practices may initially result in higher costs, but may also enhance the country’s environmental credentials and attractiveness for companies seeking to play a major part in Qatar’s forecasted growth. QSAS goes Global Qatar Sustainability Assessment System (QSAS) changed its name to Global Sustainability Assessment System (GSAS). The change in the name is meant to support the all-inclusive offering of the system in assessing all types of developments, starting from macro level, such as master plans of cities, to micro level,
such as single buildings. GSAS is unique in catering for specific typologies such as core and shell, schools, residential (single and group), mosques, hotels, light industries, neighbourhoods, construction, operations, healthcare, railways and others. “GSAS is the most comprehensive sustainability rating system in the world,” said Dr Yousef Mohamed Al Horr, Founder and Chairman of the Gulf Organisation for Research and Development (GORD) – a research, consultancy and training institute and the developer of GSAS. “Its launch is a huge step forward in our mission to promote sustainable applications and practices within the framework of a globalised society.” GSAS, developed after studies of 40 green building codes from around the world, is an integrated green building assessment system that makes use of the Arab region’s environmental and cultural data and offers an advanced system that adheres to the recent technological advancements through the use of Internet. It embarks on creating a new standard for sustainable benchmarking in green building developments. Saudi Arabia, Kuwait, Jordan, and Sudan are showing great interest to study the adoption of GSAS as the unified code for the region.
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Qatar introduced a new green building code in order to promote sustainable practices in the construction industry. the new code may well become the benchmark for the region.
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Sustainability high on national agenda
“Our goal now is to enable other countries and global institutions to benefit from the GSAS as a reliable performance-based and quantifiable sustainability rating system,”
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Dr Yousef Mohamed Al Horr, Founder and Chairman of the Gulf Organisation for Research and Development (GORD)
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Green Building Code introduced
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he purpose of the Green Building Code (GBC) is to create a sustainable building environment that minimises ecological impact, while addressing the specific regional needs and environment of Qatar. Its stated purpose is the promotion of environmentally sound design and development techniques in order to design buildings and infrastructure that are sustainable. The GBC places emphasis both on technical issues, such as materials and construction technologies and on non-technical issues, such as socio-economic and cultural heritage aspects and it incorporates GSAS. The GSAS is divided into eight sustainable categories and sets of criteria, each with a direct impact on environmental stress mitigation. Each of the eight categories consists of certain environmentrelated factors such as energy efficiency, water management and land and cultural conservation. Each category measures a different aspect of the project’s environmental impact. The categories define these broad impacts and address ways in which a project can mitigate the negative environmental effects. These categories are broken down into specific criteria that measure and define individual issues, ranging from review of water consumption to assessment of light quality. Each criterion specifies a process for measuring individual aspects of environmental impact and for documenting the degree to which the requirements have been met. A score is then awarded to each criterion based on the degree of compliance and the criterion’s level of impact. It is anticipated that GBC will apply to all existing buildings by 2020.
“Our goal now is to enable other countries and global institutions to benefit from the GSAS as a reliable performance-based and quantifiable sustainability rating system,” Al Horr asserted. QU and GORD sign pact Qatar University Vice President for Research, Hassan Rashid Al Derham and Al Horr signed a Memorandum of Understanding to cooperate in the launch of joint initiatives and projects aimed at conserving energy, reducing carbon emissions and creating an integrated community based on economic and environmental equilibrium while preserving the architectural identity of the Arabian Gulf. The agreement comes in line with the shared vision of promoting the adoption of the concept of sustainability in Qatar and the Gulf region as a whole. GORD and QU agreed to develop a general framework for coordination to teach and integrate GSAS into the university’s education curricula to raise awareness of sustainable building practices and encourage optimum consumption of energy, water and environmental resources. They will also cooperate more effectively in the field of development and research in environmental issues of common interest as well as the application of the system’s criteria in QU facilities and activation of joint research through grants provided by competent authorities or through postgraduate programmes offered at the university. Under the agreement, QU will be granted the right to use all the tools available in the system through a free and unrestricted ‘Educational Licence’, which can serve all scientific teaching, research, and academic purposes focused on green building, excluding consulting activities or research with financial returns. QU will provide GORD with scientific observations and results of studies that may be used to further develop the system.
Commenting on the agreement, Al Derham said: “We are honoured to enter into a strategic partnership with a high-profile research organisation like GORD. We will work on activating joint research practices either through research grants provided by competent authorities or through postgraduate programmes offered by the university.” Al Derham also noted that QU will, under the terms of the agreement, involve the participation of PhD researchers from GORD in supervising the students’ Graduation Research, especially researches and studies on the development of a sustainable environment. RasGas delivering a lower carbon future RasGas has successfully launched several pace-setting emission reduction initiatives across its value chain, ranging from flare minimisation to a new Greenhouse Gas Policy (GHG) reduction.
The company released its 2011 Sustainability Report which provides a comprehensive review of its environmental, social, economic and corporate performance. In its continued commitment to operating in a sustainable manner, RasGas achieved many noteworthy milestones in 2011. Among these is the development of the company’s first GHG management strategy and policy that includes independent third-party GHG verification, screening of emission reduction opportunities, engagement with local stakeholders and assessment of options for developing our voluntary reporting. Among its efforts to reduce emissions, RasGas continued to operate the region’s first acid injection (AGI) scheme that stores CO2 and hydrogen sulphide (H2S), reducing emissions of CO2 and sulphur dioxide (SO2) from the production process. This has resulted in eliminating one million tonnes of CO2 per year and 11,000 tonnes of SO2 each year
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co Villa, a modern contemporary dwelling featuring traditional Qatari architecture, culture and heritage. The landmark project, presented by GORD, reinforces Qatar’s reputation as a leading advocate for sustainable development. The eco villa is designed to win high star rating based on the GSAS, as it offers a genuinely sustainable, smart and healthy living environment for residents while preserving the Qatari architectural motifs. The sustainable features of the eco villa include onsite renewable energy generation system, water-efficient plumbing fixtures and irrigation system, energy reduction, indoor lighting design, and intelligent building control system. The eco villa will also be constructed using sustainable and recycled eco-friendly building materials that have low Volatile Organic Compounds (VOC) emission rates. The villa’s design is a modern interpretation of traditional Qatari architecture, reflecting the culture and heritage of Qatar whilst being contemporary in character and function - it creates a new aesthetic for sustainable development in Qatar, GORD informed. GORD has selected three consulting firms; LSI Architects, MYAA Architects and RHWL Architects to design the sustainable Qatari Modern villa. A committee consisting of representatives from the Qatar Museum Authority, Ministry of Culture, Arts and Heritage, Qatar University and Private Office was formed in addition to GORD’s experts to manage the bidding process and oversee the design of the eco villa.
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First sustainable Qatari eco villa launched
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Promoting a Greener Future The National Development Strategy hopes to align the growth of national prosperity to the realities of environmental constraints by establishing programmes to strengthen environmental management across economic and natural resource sectors. What has been done in the past year to drive this particular pillar of development?
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atar’s environment ministry will soon begin implementing a five-year strategic plan for proper environmental management as most of the issues highlighted for environmental sustainability have been prioritised. “Because environment is one of the four pillars of the Qatar National Development Strategy (NDS) 20112016, we are in the process of implementing all four of the projects which fall under this pillar. We will be launching them on priority basis over a five-year period,” said Rashid Al Kuwari, Assistant Undersecretary for Environmental Affairs. The projects include bio-diversity, water management, climate change, and energy and air pollution. The NDS aligns the growth of national prosperity to the realities of environmental constraints by establishing a programme of strengthening environmental management across economic and natural resource
sectors. The strategy sets out a framework for continuing economic growth that avoids penalising future generations. It will advance specific actions to conserve water, improve air quality, manage waste and protect bio-diversity. Under the strategy, it is expected that water will be better conserved and protected from degradation, gas flaring will be reduced while expanded recycling will greatly improve solid waste management. “Careful monitoring and regulation will protect vulnerable species and broadly preserve Qatar’s natural heritage. Urban spaces, subject to intense construction over the past decade, will be healthier and more liveable as green spaces are added,” the NDS documentation reveals. However, it also adds that the strategy for environmental management calls for interrelated actions. Setting specific targets, it establishes a comprehensive programme to preserve the quality of life for future generations.
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week. The conference also saw the first ever environmental march in Qatar. Hundreds of activists took to the streets to show a united front against climate change and to call for action to save the planet. Organisers of the march believe that it marks an important step to a sustained grassroots action on environmental issues across the country. The march, which was organised by Doha Oasis, a Qatari civil society organisation, moved peacefully along the Corniche as hundreds of activists made their voices heard. The conference also marked the first time that the annual conference is PaperSmart. The PaperSmart initiative aims to cut down on paper waste by reducing printed documents available and instead providing specialised stations where participants can read the text on a computer screen, download using memory sticks, or find online or on a mobile application. In the first two days of the conference, organisers reduced the amount of paper normally printed by 96%. The greenest in the region The Qatar Ministry of the Environment has serious aspirations of developing the country into a lush green landscape. “We have a vision to change Qatar into a green land using biotechnology,” said Masoud J Al Marri, Director, Biotechnology Centre under the Ministry of Environment. “In fact, we have already started a pilot project in the Dukhan area where we are growing wild trees which do not require much water and resist
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Eventful talks at COP18 The President of COP18/CMP8, Abdullah Bin Hamad Al Atttiyah told participants at the opening ceremony of the 18th Conference of the Parties to the UNFCCC that “climate change is a common challenge for humanity” and that the conference was a “golden opportunity – we must make best use of it”. Al Attiyah emphasised Qatar’s continuing efforts as host country to foster an open, inclusive and transparent process. “I stand ready to continue listening to you,” he said, noting that, as President, he continues to participate in numerous official and unofficial consultations with all parties and observers in an effort to push forward dialogue and to find a positive solution to climate change. It was in this spirit that the thousands of delegates, observers and members of the press met for discussions in Doha. This year’s sessions marks many firsts in the history of the negotiations. It is the first time the annual conference is being held in the Middle East. As such, Qatar has engaged with Arab civil society groups from around the region so that they are participating in the conference in numbers never before seen. As part of discussing climate change and how it relates to the Arab world, COP18/CMP8 hosted a series of Hikma Hours, or Wisdom Hours that look at traditional Arab knowledge regarding land conservation. These daily events covered everything from space technology used to find underground water in the desert to pastoralism in arid regions, and look set to provide a continuing platform for constructive dialogue in the coming
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ast year, Qatar held the first Qatar International Environment Protection and Sustainable Energy Exhibition & Conference (ecoQ) Exhibition and Conference, showcasing the latest in environmentally-friendly technology from around the world and some of the newest industries and initiatives in Qatar. Ahmed Al Sada, Director of Evaluation of Environmental Impacts Department of the Ministry Of Environment, explained that “the purpose behind organising this conference is to try and present a clear picture from current environmental issues including climate change and renewable energy, in addition to the most significant initiatives to take urgent procedures to maintain natural resources to achieve sustainable development.” “Qatar, headed by HH the Emir Sheikh Hamad bin Khalifa Al-Thani and HH the Heir Apparent Sheikh Tamim bin Hamad Al-Thani, is giving an increasing interest to the environment out of the belief that protecting the environment and preserving its natural resources will achieve optimum safety levels and a quality lifestyle on planet Earth. This is aligned with the Ministry of Environment in its vision, strategy plans and different environmental programmes which all aim to achieve Qatar’s National Strategy 2030.” Naser Al Noaimi of Qatar Green Centre, highlighted the importance of developing new technology to design, maintain and renovate buildings in an environmentally sustainable way that also promotes social and cultural values. He also presented Qatar’s Sustainability Assessment System (QSAS) standards for environmentally-sound construction to the international audience.
Major push for green building movement
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he Ministry of Environment has embarked on a project to manage the massive construction and industrial waste in the country and set up a recycling plant on a major scale. As a prelude to this project, the Ministry will soon issue standards and specifications for used and recycled material. Qatar has one of the highest waste generations in the world, with about 20,000 tonnes of construction and demolition waste generated in the country every day. Disposal of such huge amount of waste has posed major environmental challenges. “Some 40% to 50% of the solid waste generated in the country can be effectively recycled and reused. To provide a legal basis for management of waste, we are working on setting standards and specifications for used and recycled material. The standards are expected to be issued in a month,” Dr Mohammed Saif Al Kuwari, Assistant Undersecretary for Laboratories and Standards Affairs at the Ministry said. He said the new standards would apply to all types of waste such as plastic, steel, glass and textiles. They will also regulate the use of recycled material in building projects.
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extreme climatic conditions such as high temperature and salinity. Within five years, Qatar will become one of the greenest countries in the region.” Al Marri said the centre is also studying several other varieties of plants which can sustain harsh climatic conditions and could be irrigated by treated-water as Qatar has plenty of it. The Biotechnology Centre, under the patronage of Minister of Environment HE Abdullah bin Mubarak bin Aabboud Moudadi, and in cooperation with Hassad Food Company, organised a four-day GCC Workshop on ‘Agricultural and Environmental Biotechnology Applications’. The workshop was held to exercise the implementation of the recommendations of the Ministerial Committee for Agricultural Cooperation in the GCC countries in order to pinpoint the current status of biotechnology applications in the GCC region and to identify its strengths and weaknesses as well as opportunities and challenges in the field. More than 40 eminent experts of the subject from several countries such as the US, Cuba, Egypt and the GCC states exchanged their thoughts and ideas at the workshop, intending to produce recommendations that were duly submitted to the Committee of Agricultural Policies in the GCC states. Moreover, it also identified priorities for GCC action in the field of agricultural and environmental biotechnology. Green Growth Institute Qatar has joined a consortium of founding member-countries in initialising an agreement to establish the Global Green Growth Institute (GGGI). HE Abdullah bin Hamad Al Attiyah, Chairman of Administrative Control and Transparency Authority, signed the agreement on behalf of Qatar at the Global Green Growth Sum-
mit in Seoul, South Korea. Describing the GGGI as an important initiative to address the challenge of climate change, Al Attiyah stated that it plays a critical role in the collective effort to promote the paradigm of green growth, and ultimately improve the economic, environmental and social conditions of both developing and emerging countries. With the establishment of the GGGI, the founding membercountries moved towards shaping the global knowledge agenda for green growth, a global initiative that will work on identifying and addressing major knowledge gaps in green growth theory and practice. Qatar’s endorsement of the agreement reflects its willingness to promote green economy strategies and to forge collaborative partnerships with member-states, notably South Korea. The GGGI will identify areas of opportunity that promote economic growth while increasing overall environmental sustainability. It will also help member-countries to work together in designing and implementing initiatives that achieve green growth goals. By joining the initiative, Qatar aims to play an active role in promoting a more resource-efficient and low carbon economic development while helping developing countries embrace green growth. This event marks the formal launch of essential international cooperation on testing, exploring, and refining policies and actions on green growth for practical implementation in both developed and developing countries. Present at the initialling ceremony, Fahad bin Mohamed Al Attiyah, Chairman of the Qatar National Food Security Programme (QNFSP), called upon arid and semi-arid countries to work together to confront the threat of food insecurity on sustainable basis
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Expansion in Retail Qatar’s retail and malls market generated QR32 billion ($9 billion) in 2010, up 8.3% from 2009. Qatar has the highest consumer confidence in the Middle East at the moment, according to a worldwide index assimilated by MasterCard, which was published in April. It scored 93.6, above the Gulf average of 85.7. While Qatar’s rating had dropped a little in the first six months, it remains remarkably high, given the international climate.
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he retail sector’s strong performance and high consumer confidence can be chiefly attributed to Qatar’s buoyant economy. The country’s gross domestic product (GDP) per capita now tops QR364,000 ($100,000) in purchasing power parity terms – the highest in the world – and will rise to almost QR455,000 ($125,000) by 2016, according to forecasts by Dohabased QNB Capital and the International Monetary Fund (IMF). With such spending power and the forecasted increase in population, growth of the retail sector is apparent. Al Khor mall opens Prominent retailer LuLu Group opened its much-awaited Al Khor Mall last year. It is spread over 375,000 sq m on three floors, features a hypermarket and several other outlets, and has parking space for more than 1,000 vehicles. The huge mall caters to the growing consumer demand for fresh vegetables and fruits to hot food, bakery, grocery, fashion apparels, electronics and home appliances. There are a number of exclusive outlets and counters for jewellery, perfumes, watch-
es and cosmetics. Hundreds of shoppers thronged mall on the opening day. The huge complex also features a multiplex and a vast food court, consisting of a large number of international, regional and national brands. One of the stores to open within the mall was Splash, which has a new and improved uni-brand format, complete with a cosmopolitan look and feel that will cater to various age groups of audiences. Raza Beig, CEO Splash & Iconic, said, “The decision to open our store at Al Khor mall is because it is a newly launched mall in the region that caters to 80% of the nationals present and we are excited to see the response we receive as we are tapping into a new market.” QMA opens retail shop at Harrods Qatar Museums Authority (QMA) opened its In-Q retail shop at Harrods in London in June. Offering insights into Qatari culture and lifestyle, In-Q is the first retail outlet of its kind to be opened by QMA abroad. The “innovative store experience that offers a unique insight
Festival City completion on schedule Work on Doha Festival City, the QR6 billion entertainment, retail and hospitality destination which was started in 2011, is on track for completion. Covering an area of 433,847 sq m, it will
Al Meera Bookstore launched Subsidiary of Qatar Exchange-listed Al Meera Consumer Goods Company, has launched the Al Meera Bookstore. The bookstore, wholly-owned by Al Meera Holding, will operate stores under the British franchise W H Smith. Initially, stores are expected to be opened before the New Year at Ezdan Mall, Giant Hyatt Plaza and Nuaja Mall. “Our expansion strategy not only includes building more outlets so as to increase access to our store but additionally to increase our product offerings,” said Mohamed Nasser Al-Qahtani, Deputy CEO, Al Meera. With an ever-expanding economy and a diverse consumer base in Qatar, Al-Qahtani said the demands and expectations of residents were increasing. W H Smith Travel is one of the oldest global brands with more than 550 bookstores in their portfolio, offering books, stationary, magazines and newspapers.
have over 260,000 sq m of gross leasable area accommodating entertainment and leisure facilities, supermarkets, cinemas, hotels and conference facilities. The development is located 15km north of Doha on Al Shamal Road. The first phase of development will see the completion of IKEA’s flagship store, and the complex will eventually feature more than 500 retail and dining outlets. At 168 metres, the IKEA store is longer than two new A380 Airbuses laid end-toend. The general contractor package for IKEA was awarded to the joint venture between Qatari Arabian Construction Co and Amana Qatar Contracting Co with the mechanical, electrical and plumbing package awarded to Hamad and Mohammed Al-Futtaim Engineering. Kareem Shamma, Chief Executive Officer of Bawabat Al-Shamal Real Estate Company, owners and developers of Doha Fes-
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Al Meera to adopt mall concept Al Meera Consumer Goods and its subsidiaries have incorporated a futuristic mall strategy as part of its aggressive domestic expansion plan. “To facilitate our future expansion plans in the country, we are going for a shopping mall concept which might be differentiated into two types: community and neighbourhood ones,” said Mohamed Al-Qahtani, Deputy CEO, Al Meera Consumer Goods. The community model is a large-scale supermarket that, in addition to traditional groceries, will include additional services such as banks, food court and laundromats, he said, adding, the neighbourhood model is a convenience store, catering to the immediate vicinity with groceries and basic services, such as dry cleaners and pharmacies. “Using this model, 2013 will see more Al Meera outlets opening throughout the country,” he said, asserting that Qatar has always been and will always be its primary market. Even though in the past year the company inked deals to expand its brand in international markets, the exercise has not been done at the expense of the domestic market, Al-Qahtani said. Accordingly, over 60,000 sq m of Al Meera’s community and neighbourhood shopping malls are already under development, most of which are expected to open sometime during the next three years. The Laqtafia outlet, a 4,000 sq m neighbourhood shopping mall, is to break ground soon, while regulators have given the go-ahead to begin development of the Al Dakira shopping mall. The proposed Al Wajba, Jeryan Njema, Muraikh, Azizia, Rawdad Akdeem, Muaither, Rawdad al-Hamama, and Al Wakra branches are already in the design phase with construction expected to commence within the coming months. Al Meera has already secured 15 plots of land in Qatar to further facilitate the company’s expansion plan from 2015 onward.
Mohamed Nasser Al-Qahtani, Deputy CEO, Al Meera Consumer Goods
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into the diverse culture, arts, and crafts of Qatar.” Visitors can enjoy a comprehensive experience, where traditional arts and crafts, books, Islamic clothes, jewellery, and merchandise from Qatar’s world-class museums will be on show and available for purchase. There is also a relaxation area serving Arabic coffee with dates and sweets, giving visitors a chance to sample Qatari hospitality and connect with Qatar’s culture. Mansoor Al-Khater, CEO, QMA said that the aim is to offer a taste of Qatari culture and heritage to the people visiting the retail shop in Harrods. “In-Q will be closely connected to art exhibitions and major cultural activities taking place in Qatar. The merchandise on display at In-Q will constantly change to reflect our cultural activity throughout the year and offer Harrods visitors a realistic glimpse into Qatar’s emergence as a cultural hub in the region,” he added.
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tival City, said: “The construction progress is a testament to the expertise of all teams involved in this landmark project. Their commitment to Doha Festival City is a fantastic endorsement of what we are looking to achieve here. More than 777,000 manhours have already been invested to bring the project to this stage.” Lagoona Mall Lagoona Mall’s walkways are now dotted with new brands and stores, including Boggi, DKNY, Jézéquel and Hanayen as well as McDonald’s and Chili’s restaurants. The latest additions bring to 65, the number of outlets, comprising some of the world’s leading brands. These six outlets will offer more choice to the mall’s visitors. Boggi has been at the forefront of chic Italian menswear for years and offers the highest quality attire for corporate and leisure wear. DKNY is the energy and spirit of New York, which is known to be international, eclectic, fun, fast and real. Jézéquel has become one of the leading brands on the French market since the 1980s and showcases some of the best men’s
sportswear and golf outfits. The international range of brands is complemented by Hanayen, a prestigious homegrown outlet for abayas bringing feminine styles and cuts to the Gulf ’s traditional female dress. On the culinary front, Lagoona Mall will be home to McDonald’s new global concept with the most recent face-lift of its restaurants worldwide, while Chili’s will top-off Lagoona Mall’s food and beverage list offering the best of American favourites and southwestern flavours. Ezdan Gharafa to open soon Ezdan Real Estate Company’s new generation Ezdan mall, being built along the Shamal Expressway, is part of the company’s strategy to diversify its investments. The Ezdan Mall Gharafa, which should open in 2013, will be managed by Malik Q Awan, a widely-experienced veteran in the retail industry. The mall will be 400,000 square feet in area on three floors and will be at the heart of the prime shopping district, surrounded by other shopping malls and hypermarket. Planning and negotiations are in progress with major retailers
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hospitality enticing tourists Qatar’s attracting more and more tourists to the peninsula every year. The World Travel & Tourism Council (WTTC) forecasted that Qatar will see the greatest regional growth in 2012, while STR Global Data reported that Qatar’s tourism sector was likely to see a near-70% growth in hotels, the largest in the Middle East and Africa.
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he Middle East/Africa hotel development pipeline for January comprised a total of 495 hotels totalling 131,981 rooms, according to STR Global’s construction pipeline report. Among the countries in the region, Qatar reported the largest expected growth (up 69.9%) if all 7,340 rooms in the country’s total active pipeline open. More than 6,000 hotel rooms came online in Qatar in the third quarter of 2011 as 25 properties and 10 hotel apartments entered the market. Qatar is building 77 new hotels and 42 hotel apartments ahead of the FIFA World Cup in 2022, in a bid to accommodate a flurry of tourists and football fans. A number of new hotel brands are expected to announce their expansion in the country in the near future, either as stand-alone projects or part of mixed use developments. The Torch blows out its first candle The Torch Doha celebrated one year of operation in the luxury hotel market in November. Its first year of operation marked the
visit of sports personalities and world class football teams who chose the Aspire Zone facilities. Gerhard Foltin, General Manager of The Torch said, “The hotel concept is captivating: the rooms with their top feature - the new iPad solution, the revolving restaurant with its panoramic views and the cantilevered pool - highest in Doha are some of the main attractions. Not last is the hotel’s iconic silhouette standing high on Doha’s skyline. We had to focus on keeping our service standards high, to match the rich design and technology concepts.” All meeting rooms at The Torch are equipped with state-ofthe-art presentation and audio-video facilities. The video-conferencing system allows communication with four different destinations simultaneously and the meeting rooms are equipped with high definition LCD/ Plasma screen, which can display any content from iPad or PC. The recent introduction of the ‘In-Room iPad Solution’ highlights the hotel’s preoccupation for subtle hitech features, which facilitate speed of service and better communication between guests and staff members.
Katara Hospitality Katara Hospitality announced its new name and its strategic international expansion plans at the Arabian Travel Market (ATM) 2012 tourism fair in Dubai, taking the advantage of the international platform provided by the prestigious event. Katara Hospitality was formerly known as Qatar National Hotels (QNH). “A clear vision and well-defined objectives made the launch of Katara Hospitality a success at the global level,” said Hamad Abdulla Al Mulla, Chief Executive, Katara Hospitality. “We have also been supported throughout this exercise by carefully selected partners that contributed to conveying the right message across a large audience. The re-branding exercise was complex and challenging. We would like to thank our partners in this project for their dedication and ability to make things happen.” Katara Hospitality signed a memorandum of understanding (MoU) with the Gambian government under which the two sides would join in the development of the tourism industry in the African country. It will help develop a ‘unique resort’ near Banjul, Gambia’s capital city, at an investment of about QR730
million. The resort will cover an area of 18 hectares located in Bijilo Forest Park on the Western African coast. Katara Hospitality chairman, Sheikh Nawaf bin Jassim bin Jabor Al-Thani said the resort would have at least 200 rooms. Asked why Katara Hospitality had chosen to invest in Gambia, Sheikh Nawaf said: “We are heading to continents...not just Asia, but we are spreading all around. Qatar and Gambia have a very good relationship, at the political level. Obviously, that will lead to economic co-operation.” With a pleasant sub-tropical climate, sunshine and sandy beaches and a rich heritage, tourism is the fastest growing sector of the Gambian economy, accounting for about 12% of the country’s GDP. Efforts at tourism diversification are directed to developing the MICE market, while elevating the eco-tourism, culture and heritage tourism as well as the sports and health tourism. Regional awards for Qatar hotels W Doha Hotel and Residences won the Middle East’s ‘leading
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Qatar will be one of the fastest growing markets in the Gulf hospitality sector with growth expected to be about 14% per year against the regional average of 8% according to a study for 2012. “Qatar is an important business hub in the GCC region. The hospitality market in the country is expected grow at a CAGR (compound annual growth rate) of 13.6% as strong macroeconomic conditions continue to drive the demand for hotels,” Alpen Capital said in a report. On the other hand, the GCC hospitality market is anticipated to grow at an annual rate of 8% to $28.3 billion (QR103 billion) by 2016 compared to $19.2 billion (QR70 billion) in 2011, it said, adding occupancy rates are slated to average around 67-73% between 2012 and 2016. Tourist arrivals in Qatar are expected to rise at a CAGR of 1.9%, between 2012 and 2022. The Qatar government is planning to incur $65 billion (QR236 billion) in infrastructure spending to facilitate tourist movement during the 2022 FIFA World Cup. “These drivers are likely to aid travel arrivals, going forward,” then report said, adding Qatar’s successful bid to host the 2022 FIFA World Cup is likely to provide a major boost to
tourism activities in the region. Finding that over the next ten years, the country is expected to see ‘significant’ additions to its room supply pipeline, Alpen Capital said the Qatar government has allocated $20 billion (QR72.8 billion) for the development of tourism projects which include hotels, parks and other entertainment avenues. Hotel room capacity in Qatar is expected to grow at a CAGR of 9.1% over the next five years, according to Alpen Capital. Hotel room demand is expected to rise strongly as corporates from across the world explore various business possibilities. “This is likely to boost occupancy rates from 59% in 2011 to 66.8% in 2016. Strong corporate demand for hotels is likely to help ADRs (average daily rates) rise at a CAGR of 1.6% from $231 (QR841) in 2011 to $249.7 (QR910) in 2016,” the report said. Although there is a growing domestic demand for hotels which is likely to be driven by rising income levels in the GCC region and the fact that per capita income in GCC nations is higher than most advanced economies, it said oversupply of hotel rooms could be a challenge going forward as this could affect the performance of the hospitality industry by reducing occupancy rates and exerting pressure on ADRs.
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‘More than 6,000 rooms”
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Katara Hospitality has projects in excess of QR120 billion under development in Qatar and abroad, according to chairman Sheikh Nawaf bin Jassim bin Jabor Al-Thani. “We have about 15 world-scale projects under development, both within Qatar and abroad. We are creating more than 6,000 rooms all over the world.” Katara Hospitality currently owns five internationally branded hotels in Qatar - Sharq Village & Spa, The RitzCarlton Doha, Sheraton Doha Resort & Convention Hotel, Doha Marriott Hotel and Mˆvenpick Hotel Doha. Two Merweb branded hotels - the Merwebhotel Central Doha and Merwebhotel Al Sadd Doha - are also part of Katara’s Qatar portfolio. In addition, it also owns and manages the Sealine Beach Resort, one of the country’s favourite vacation spots.
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business hotel’ and ‘leading hotel and residences’ awards at the Middle East World Travel Awards held in Dubai. The World Travel Awards are the travel industry’s equivalent to the Oscars and is seen as one of the biggest travel events of the year. The awards celebrate exceptional hotels’ ultimate achievement and serve to reward excellence across all sectors of the travel and tourism industry. The ceremony was attended by an international crowd of experts in the hotel and tourism industry, including a delegation from the W Doha Hotel and Residences led by General Manager Safak Guvenc. “We are delighted with these two awards; the fact that W Doha was selected among so many other brands in the region underscores W’s strong iconic style and commitment to innovation,” Guvenc said. Meanwhile, the St. Regis Doha also received two major accolades. It was named the ‘Middle East’s Leading New Hotel’, in a closely-fought category that saw the hotel emerge as the favourite new venue of the regional travel industry. It was also named ‘Qatar’s Leading New Hotel for 2012’ – a major achievement given the significant number of new venues opening this year. Retaj Hotels Qatar earns Arab hospitality honour Retaj Hotels Qatar won first place for ‘Uniqueness Tourism 2012’ and earned ‘the best tourist destination for an Arab family’ honour awarded by the Arabian Centre for Media Tourism, under the sponsorship of Arab League. A Retaj delegation headed by Executive Director (Marketing and Project Management) Hashim Al Awadhi travelled to Cairo with Ahmad Al Habash acting on behalf of the company delegation, and Ahmed Khorsheed, General Manager of one of Retaj hotels, to receive the prize. Al Awadhi said: “The prize did not come for nothing ... it is the achievement of all our efforts, based on our values and the traditions.”
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Qatar’s vision is to become a global leader in the world of museums, art and heritage. Institutions like the Qatar Museums Authority (QMA) that primarily drive the nation’s vision, bring the best work to the country.
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he Museum of Islamic Arts, The Orientalist Museum, National Museum of Qatar, Mathaf: Arab Museum of Modern Art and the Public Art Department fall under the QMA umbrella. These have been setting new standards in global world of heritage, architecture and archaeology.
National Museum of Qatar to open in 2014 The Qatar National Museum opened in 1975 in a restored palace originally built in the early 20th century by Sheikh Abdullah bin Jassim Al-Thani. It served as his family residence and the seat of government for approximately 25 years. In addition to the original Emiri Palace, the former Qatar National Museum included a Museum of the State, a lagoon and a very popular marine aquarium. In 1980, the building won the Agha Khan award for restoration and rehabilitation of Islamic architecture. This splendid monument to Qatar’s past is now preserved as the heart of the new National Museum of Qatar. The new museum’s innovative design created by eminent architect Jean Nouvel is inspired by the desert sand rose and grows organically around the former palace. This unprecedented 21st century institution will celebrate the culture, heritage and future of Qatar and its people. It reflects and belongs to a new era in Qatari prosperity, the country’s prominent role in the Arabian Gulf community and its world standing. The National Museum of Qatar is currently closed and the new museum is scheduled to open in December 2014.
Sports Museum Wins Award The Qatar Olympic and Sports Museum has won an international award for its Arab Games Exhibition publication. The catalogue was one of twelve publications honoured by the International Sports Heritage Association at its annual communications awards. The catalogue was also voted ‘best in show’ by industry peers at the accompanying conference. Aimed at families, schools, expats and the local community, the catalogue focused on the history of the Arab Games, Arab identities, and Qatar’s place in the Arab (sports) world. It was distributed among the sports federations in Qatar and was made available for the international sports community. Hans-Dieter Gerber, Curator with the Qatar Olympic and Sports Museum, attended the awards ceremony in Newport, Rode Island, to accept the award on behalf of the museum. QMA wins Pan Arab Web Awards The Pan Arab Web Awards Academy has honoured QMA with the best interactive award for the QMA Facebook page and with the Best Web-Design Award (under the Governmental Organizations Category) for the Qatar Japan 2012 website. A prestigious ceremony and gala dinner were organised in Dubai, UAE, to mark this occasion. Representatives from QMA and the Qatar Japan 2012 team attended the ceremony to collect the awards. The Qatar Japan 2012 delegates were joined by the Vice Consul of the Japanese Embassy in Dubai, Isao Kishi, in accepting their award. The Pan Arab Web Awards Academy aims through these awards to honour the owners of the Facebook pages and appli-
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The collector’s section featured a glimpse into the pre-oil and gas Qatari home with this exquisitely refined bedroom set at the Mal Lawal Exhibition
Display of colour infused kitchenware in the museum cafe at Mal Lawal
Mal Lawal Mal Lawal was a unique display of visual treasures that features an extensive collection of artifacts, antiques and contemporary artworks under one roof. It is the first exhibition of its kind in Qatar and the region. This exhibition offered a rare glimpse into the private collections that exist in Qatar, and was conceived, and made possible, under the guidance and leadership of HE Sheikha Al-Mayassa bint Hamad AlThani, and the Higher Management of the Qatar Museums Authority. Mal Lawal is divided into two main parts, with 80% of the exhibition dedicated to collectors and their objects, which come both from Qatar and from other parts of the world, and include every day and extraordinary items, with the remaining part focusing on Qatar’s contemporary visual arts scene. The relationship between these two elements represents the dialogue between the past and the present, and draws a connection between the old – what has been lovingly collected and preserved – and the new, the original works of art being created today.
Commentary in oil on 2022 by Hassan Al-Mulla tips a hat to artist Jean Michel-Basquia at Mal Lawal.
cations and raise their standards, promote the spirit of innovation and creativity, and encourage all sectors to become involved in the social media and digital economy. QMA partnered with Google on Google Art Project QMA celebrated its partnership with Google on the Google Art Project, which enabled people to discover and view more than 30,000 artworks online in extraordinary detail including MIA and Mathaf: Arab Museum of Modern Art. The MIA and Mathaf: Arab Museum of Modern Art were the only museum in the Middle East to have kept their doors open 24/7 with the Google Art Project. Art lovers were able to explore a wide range of artworks at a brushstroke level, take a virtual tour of a museum, and even build their own collections to share from paintings, sculptures, street art, and photographs with just a few mouse clicks. The partnership between QMA and Google was part of a major global expansion of the project, which now counts 151 partners in 40 countries. More than 30,000 high resolution objects are available, up from the original 1,000 in only nine museums. Streetview technology images now cover 46 museums, with more on the way.
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Katara: the cultural hub
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K
atara is the Cultural Village of Qatar, where cutting edge activities of all fields show the cultural diversity of the world in one single traditionally Qatari place. It was born out of a dream long envisioned by The Emir, HH Sheikh Hamad Bin Khalifa Al-Thani, to position the country as an international cultural lighthouse radiating in the Middle East through theater, literature, art, music, conventions and exhibitions. Katara is a place where people share cultures to nurture understanding and peace. “In an ever-evolving digitalised global world, our goal is to provide a platform for people of the world to come together and share the wealth of their vibrant cultures, to embrace differences that make our world unique and to discover similarities that unite people regardless of their origin,” say the management of Katara. Katara has hosted numerous events during the year and the most recent one was a concert of Sami Yousef, the British singer-songwriter, composer, producer and an accomplished musician. He is one of the most famous artists who influenced and revived Islamic music and combined it with modern styles
which shaped the devotional music enjoyed by contemporary Muslims. Another interesting event held last year was the 2nd Traditional Dhow festival. As the only Dhow Festival in the region, the Second Annual Dhow Festival showcased over 100 dhows which consisted of 13 different types of dhows from across the Gulf. This year the exhibition displayed dhows from Bahrain, Kuwait, the Kingdom of Saudi Arabia, UAE, Qatar and Oman. Owners and crews of the dhows were present to meet and greet visitors, sharing secrets of the trade in an effort to preserve Qatari culture. Dhow Festival Committee Manager, Ahmed Al-Hitmi said: “Building on the success of last year’s Dhow Festival we are proud to, again, host this event which honours Arab Culture and turn it to an annual celebration. The Dhow Festival pays homage to our ancestors who worked effortlessly to build a future for our country. This event provides a platform for cultural exchange, promoting Qatari history, educating and promoting our legacy with the youth of Qatar.” The Doha Tribecca Film Festival’s fourth edition was also held at the Katara along with three other venues.
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1001 Inventions
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atar Museums Authority and Qatar Shell partnered with 1001 Inventions to bring to Doha two international exhibitions about Muslim heritage and the origins of modern science. The 15-week celebration featured award-winning interactive exhibitions, movies, live shows, cultural events and educational seminars. The ground-breaking achievements of this era, from the seventh to the 17th centuries, were introduced to residents from October 2012 until January 2013 through the internationally renowned and award-winning 1001 Inventions exhibition and the Arabick Roots exhibition, which premiered at the Royal Society in London in 2011.
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he practice of organised sports in Qatar originated in the 1940’s when oil company workers, mainly Europeans and Asians, would practice sports such as football, cricket, tennis and golf. Qatari workers would join them and very soon football became the popular game. Gradually, Qataris started to form football teams in their own residential areas (furjan) where they would play each other in organised competition. The first ever club established was Itihad Al-Arab in Dukhan in 1948 and since then dozens more were founded. Sports facilities Most of the clubs evolved from these football clubs into multisports clubs offering a variety of sports to their members. Qatar had 309 sporting facility centres in 2011, which was a 10% growth on 2008, according to a sports infrastructure update. Of the 309 facilities in 2011, pitches constituted 29%; followed by gymnasiums (12%), tennis and squash courts (7%), athletics tracks (4%), handball courts and billiards halls (4%) and table tennis, volleyball courts and shooting gallery (4%). Qatar has
nine basketball courts, four equestrian fields and three chess halls, hockey fields and car racing rings, while it also had one camel-track, one horse-track, one golf course, sailing club and bowling centre. However, Qatar, which is to host the 2022 FIFA World Cup, has asserted that all the facilities needed to stage such an event – including 12 stadia – would be ready in time. The stadia, costing around $4 billion (QR14.5 billion), include three existing venues, which will be expanded, and nine new state-of-the-art stadia with capacities of at least 43,000 each. As part of its FIFA World Cup bid, Qatar has pledged to spend $50 billion (QR182 billion) to build and expand the required infrastructure, while also adding 65,000 hotel rooms to meet the minimum requirements. National day of sports The second Tuesday of February every year is now celebrated as a national holiday. The recent decree stipulates that ministries, government departments and public sector institutions as well as other organisations including the private sector, will organise sports activities on the day for their employees. The move came
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Qatar has realised the power of sport and is currently playing an increasingly prominent role in the region and beyond as it uses its influence to forge friendships with other nations and organisations. The country has even promoted sport through a national holiday where residents are encouraged to get active.
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Qatar branding for Sport
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Connecting Business & Sport, Aspire4Sport 2012 featured unique conference programmes.
following Qatar’s widely acclaimed desire to make sport a way of life in the country. It is expected that the move will usher in a new era of sport activities, with a particular emphasis on young children. The holiday aims to create awareness about sports and its health benefits. With this decision, the government hopes to launch a drive that will educate people about the important role of sports in their individual and social lives. Qatar is also the only country that runs a widely-followed ‘Schools Olympic Programme’ aimed at encouraging school children to take up sports as a healthy way of life. The programme organises events for school children in sport beats like basketball, tennis, volleyball, football and athletics. World Championship Cycling in 2016 Qatar will host the International Cycling Union (UCI) Road World Championships in 2016. The event, also known as the World Cycling Championships, along with the Tour de France and Giro d’Italia, forms the Triple Crown of cycling. It includes a road race and individual time trial for elite men, which form the main draw of the competition. The women’s world championships, the under-23 world championships and the under-19 world championships are also part of the event. The championships have rarely been hosted outside Europe. In fact, ever since the inaugural event in Germany in 1927, it has
only ventured out of Europe seven times. Qatar is only the second Asian country to be awarded the event. The winner of the road race earns the right to wear the exclusive Rainbow Jersey the following year. FINA World Cup The Qatar Swimming Association (QSA) ‘together with the International Swimming Federation’ hosted the FINA Arena Swimming World Cup 2012 at the Hamad Aquatic Centre in Doha in October. The tournament saw some of the world’s best swimmers, including the 2012 Olympic Games 200-metre butterfly gold medalist Chad le Clos from South Africa and Olympic Games finalist Katinka Hosszu of Hungary. The FINA World Swimming World Cup’ is one of the world’s most esteemed water sports tournaments. FINA is the governing body of all the aquatic sports - swimming, water polo, diving, synchronised swimming, and open water swimming - recognised by the International Olympic Committee (IOC). Qatari claims international role Qatar’s Sami Abu Shaikha was appointed Senior Vice-President of the UIM (Union Internationale Motonautique), powerboat racing’s governing body, during the year. Abu Shaikha is heavily involved in marine sports through his
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Qatar’s shining stars at the London 2012
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N
asser Al-Attiyah and Mutaz Essa Barsham stroke bronze for Qatar at the London Olympics last month. Al-Attiyah showed incredible nerve to hold off his rivals in the final of the Skeet while Barsham’s first successful attempt at 2.29 metres was enough for joint-third in the Men’s High Jump. Their medals were the third and fourth ever for Qatar. After American Vincent Hancock broke the Olympic record to win gold with a final tally of 148 out of 150 and Denmark’s Anders Golding took silver with 146, Al-Attiyah and Valeriy Shimon of Russia (144) needed a sudden-death play-off to decide the bronze medal. Both men were seasoned Olympic campaigners and it was difficult to predict a winner. Such was the level of consistency shown by all the shooters in the final, it was a case of whoever could hold their game together the longest. This was Al-Attiyah’s fourth Olym-
pic Games – having previously made the finals of the event in 2004 and 2008, so this experience should have given him an edge. Shimon failed to qualify for the final in both of his previous attempts. In what could have been a marathon exchange, it was the Qatari who emerged victorious. He went first and the pressure he exerted each time eventually told, as Shimon’s sixth shot missed its target. In the Men’s High Jump, eight men went clear of 2.29 metres, but only Russia’s Ivan Ukhov and Erik Kynard were able to better that. Ukhov went on to win gold in convincing fashion with a final clearance of 2.38. Barsham had three efforts at 2.33, but like many of his rivals, he found the height too much on the night. Derek Drouin of Canada and Robert Grabarz of Great Britain shared the bronze medal with Barsham as they had identical records.
The jubiliant winners arrive back in Doha
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The Qatari team at London 2012
How Qatar’s athletes fared at London 2012. Ahmed Ghithe G Atari (18) finished 5th in his 400-metre Individual Medley swimming heat, which wasn’t enough to qualify for the final. Aia Mohamed (18) Was beaten 4-0 by Zhang Mo in the preliminary round of the Women’s table-tennis. Qatar’s flag bearer at the opening ceremony, Bahya Mansour AlHamad (20) finished 17th out of 56 women in the 10-metre Air Rifle qualification. She didn’t do quite as well in the 50-metre Rifle 3 Positions event. Hamza Driouch (17) qualified 2nd in his heat and qualified for the semi-final However, he finished a disappointing 11th in his semifinal and missed out on final qualification. Mohamed Al-Garni (20) came 5th in his opening 1,500-metre heat, qualifying him for the semi-final. He finished 7th in the semi-final and just missed out on being one of the fastest losers. Mohammed Abduh Bakhet (24) finished in 68th position in the Men’s Marathon, in a time of 2 hours and 25 minutes. Uganda’s Stephen Kiprotich won Gold in 2.08.
Musaeb Abdulrahman Balla (23) failed to qualify for the final of the Men’s 800 metres. Mutaz Essa Barshim (21) won a bronze medal in the Men’s High Jump. Nada Mohammed W S Arakji (17) finished fourth in her 50-metre swimming sprint in a time of 30.89. Ranomi Kromowidjojo took the Gold medal in 24.05, an Olympic record. Nasser Al-Attiyah (41) won the bronze medal in the Skeet or the ‘clay-pigeon shoot’ event, eventually beating Valeriy Shimon of Russia in a play-off. Noor Hussain Al-Malki (17) injured herself from the blocks in her 100 metre sprint preliminary heat and failed to finish. Rashid Al-Athba (31) just missed out on qualification for the Double Trap and the Trap shooting final, finishing in 7th place in both events. Kuwait’s Fehaid Aldeehani picked up bronze in the Trap shooting final.
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Another view of the events and discussions during Aspire4Sports
continuation of page 154 daily involvement as a board member and general secretary of the Qatar Marine Sports Federation (QMSF) and attends the majority of the federation’s domestic and foreign events as the team’s legal adviser. A lawyer by trade, Abu Shaikha represents the QMSF at numerous UIM meetings and was already a member of the UIM Committee before agreeing to take on the exciting new Senior VP role at the 85th UIM Annual General Assembly, held on the Greek tourist island over recent days. The UIM is recognised by the International Olympic Committee (IOC) and is also a member of the General Association of International Sports Federations. It governs various forms of powerboat racing, including aqua bike, circuit, offshore, pleasure-navigation and radio-controlled. Doha Goals launched in London Doha Goals, a new initiative designed to develop the use of sport as a driver for social and economic change, was launched in London in the presence of government leaders, Olympic legends and some of the world’s biggest sports sponsors. Doha Goals – Gathering of All Leaders in Sport – was created under the patronage of HH the Emir Sheikh Hamad bin Khalifa Al-Thani and will build a community of hundreds of key influencers from all spheres of life who believe sport is a crucial vehicle for social and economic development.
Qatar Olympic Committee The Qatar Olympic Committee’s (QOC) role is to make sports and physical recreation available to men, women and young people in the country, fostering harmonious development in the true Olympic spirit and in accordance with the Olympic Charter. The QOC is the overall supervision body for all the sport activities and events in Qatar. Within this structure, QOC is providing a solid financial basis for the realisation of the professional plans, activities and major sport events held in Qatar. This role puts QOC on the top of the imagination of the local community when one speaks about sport.
Speaking at the event, Olympian Carl Lewis said: “Sport creates opportunities for communities: athletes from small countries and impoverished areas can compete on the global stage and shine a spotlight on their communities. This in turn creates economic opportunities at home, opens the outside world to seeing and understanding new cultures, and empowers athletes to use the public platform for good.” Delivering an address on behalf of HH the Emir at the pro-
Aspire adds more high technology Aspire Academy became the first Middle East organisation to employ Inmotio Technology during the year. Inmotio is a system which uses cameras located around a football pitch to track the movement, speed, heart rate and other information from the players. The data is sent in real-time to servers where coaching and support staff can use the information to analyse individuals and teams in the areas of technical, tactical and physical performance. The Amsterdam-based company ‘Inmotio’ is supplying the system which is fully operational on four of the ASPIRE Academy pitches, while Aspire’s indoor football pitch actually becomes the world’s first indoor stadium to be equipped with the system. Earlier technology used by Aspire Academy delivered information on covered distance and speed of the players during games. However, previous technology didn’t provide accurate measurements for short sprints (less than one second) nor for high intensity runs and turning movements to name a few important variables in football performance. In a typical football match or football training sessions, players accelerate, decelerate and change direction continuously. Using the Inmotio system, the Aspire Academy Team is aiming to improve both accuracy and reliability of these high intensity activities. Aspire Academy will be using the system mainly to focus on the individual development of its youth players. It will allow coaches to build a base line enabling them to benchmark teams and youth players against this reference.
Aspire is Qatar’s visionary sports academy, which was launched in September 2004. The academy will discover the best young sporting talent from the region and around the world, and make them world class. With state-of-the-art facilities and world-class sports programmes, it turns hopefuls into winners at the highest levels of international competition. The academy also integrates this training with an intensive, comprehensive intellectual education, giving them all the support they need to succeed. All Aspire’s departments work together to create the perfect environment for the student. As they strive towards the same goals, their harmonious, progressive interaction gives the students exactly the sort of atmosphere and support they need to thrive. The four departments are Sports, QESA, IT, and Marketing, individually playing vital roles within the structure of Aspire. But together, collaboration is the name of the game, with each department complementing the next for the overall benefit of Aspire’s students, their parents, the faculty, and the community.
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Promoting women’s sport The International Olympic Committee (IOC) praised the QOC’s effort to raise the profile of women’s sport in the Middle East. In a major departure from past trends where only male athletes went to the Olympic Games, Qatar sent four women athletes to the 2012 London Games. One of the four athletes, shooter Bahiya Al-Hamad, carried the Qatari flag at Opening Ceremony. Irena Szewinska, an IOC member and retired Polish sprinter, said: “The Qatar Olympic Committee is going step by step and doing the right thing. It is helping women take to sport in a big way. They are promoting sport in a right way. Everybody has the right to play sport and I wish them (the Qatari women athletes) the very best.” When informed that Al-Hamad would carry the flag at the Olympic Games opening ceremony, Szewinska added, “That’s very nice that a woman athlete is the flag-bearer. It is good to see that.”
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Sports legends at Aspire4sport Entering its third year under the new slogan ‘Connecting Business & Sport’, Aspire4Sport 2012 featured three unique conference programmes: Aspire-Build, focused on infrastructure and stadium development; Aspire-Tech, a conference on technology and sport; and Aspire-Med, which featured discussions on sports science and sports medicine. The congress was held at the Aspire Dome in November. In addition, there were new features organised as a joint initiative with the Qatar Tourism Authority (QTA) and the QOC, which were special workshops to explore sports tourism and discuss methods on how to develop it in Qatar. On the sidelines of all this, sports stars such as former Liverpool football Manager Gérard Houllier, Real Madrid Sports Director Pedja Mijatovic and London 2012 super heavyweight Olympic boxing gold medallist Anthony Joshua were guests featured in daily ‘Star Chats’. The chats gave the public a rare opportunity to listen to celebrities from across the sporting world share their invaluable insights gained from their careers. Guests were invited to attend the daily celebrity discussions which were broadcast on Al Dawriwal Kass sports channel and Al Jazeera
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gramme, Qatar Olympic Committee Secretary General HE Sheikh Saoud bin Abdulrahman Al-Thani, said: “Doha Goals is a sportsbased initiative that we hope will bring the world closer together: through this initiative specifically, and through sports in general, we plan to advance both individual and group development for people all over the world.”
2012 سمو الشيخ حمد بن خليفة آل ثاني يحيي الجمهور بمناسبة اليوم الوطني HH the Emir Sheikh Hamad bin Khalifa Al-Thani salutes the people of the country on the National Day
مناظر سياحية خالبة لوجهات مختلفة في سوق واقف Unique tourist attractions at Souq Waqif