10 Qatar Today October 2014

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Family first Approximately 80% of non-oil GDP in the Middle East is accounted for by family-owned businesess, which are generating more than 70% of employment in the region. Qatar Today looks at the role being played by these families in shaping the economy of several countries in the region.

Transcript of 10 Qatar Today October 2014

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inside this issueOCTOBER 2014 / VOL. 40/ ISSUE 10

COVER STORY

40 FAMILY FIRST Approximately 80% of non-oil GDP in the Middle East is

accounted for by family-owned businesess, which are generating more than 70% of employment in the region. Qatar Today looks at the role being played by these families in shaping the economy of several countries in the region.

24 BUILDING BRIDGES WITH BRAZIL

From food security and foreign policy to sports and culture, many ties unite the far-flung and diametrically opposite countries of Qatar and Brazil. In this exclusive with Qatar Today, His Excellency the Ambassador of Brazil to Qatar Tadeu Valadares elaborates on this multi-faceted bond.

34 SAUDI HOLDS THE KEY The decision of Morgan Stanley Capital International (MSCI)

to upgrade the status of the UAE and Qatar from frontier to emerging markets will pave the way for attracting foreign investments but Saudi Arabia’s plans to open its bourse for foreign investments will accelerate the process.

52 HOLD YOUR HORSES, BEFORE YOU FILL THE VALUE GAP Where do the unachieved aspirations and wasted human

potential of your corporation disappear to?

58 "QATAR IS SECURE" Qatar will be playing host to the prestigious biennial event

Milipol Qatar 2014 this month and Qatar Today talks to Brig Nasser bin Fahad Al Thani at the Ministry of Interior about internal security in the Middle East and also the upcoming Milipol Qatar 2014.

60 WORLD CUP, AHOY! The various sporting event management experts who

gathered at Josoor Institute’s "Introduction to Running Major Events" weighed in on issues ranging from preparing a winning bid to delivering a safe and secure event.

63 WELCOME TO THE FUTURE Five years from now, our daily lives will look unrecognisable.

Cisco Qatar’s General Manager tells Qatar Today just how pervasive and irreversible this change, that is coming fast, is going to be.

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inside this issue

and regulars12 NEWS BITES

18 BANK NOTES

19 O&G OVERVIEW

20 REALTY CHECK

70 TECH TALK

72 MARKET WATCH

76 AUTO NEWS

79 DOHA DIARY

OCTOBER 2014 / VOL. 40/ ISSUE 10

28 QATAR’S REAL ESTATE SECTOR HEATS UP

Qatar Central Bank’s real estate price index says that the real estate prices in the country have risen by 28.9% year-on-year and the average prices for land, commercial and residential properties in June were 20% higher than the previous peak of September 2008.

36 TALKS: THE ONLY WAY OUT The six-year-old stalemate over the suspended negotiations

for na EU-GCC Free Trade Agreement needs to be given a thought by the European Union and the Gulf Cooperation Council by having a meaningful dialogue to clear snags and misunderstandings.

54 A “RESOURCEFUL” WASTE Like its galloping economy, solid-waste generation in Qatar

is also growing strongly, due to rapid industrialisation, a spurt in income levels and an increasing standard of living coupled with developmental activities. Against this background, Qatar Today looks at the various options that are available for managing the country’s waste in a prudent manner.

65 SAFETY IN THE STADIUM On the eve of the first Securing Sport conference that is

being held outside Qatar, International Centre for Sport Security Vice Director-General Heinz Palme takes us into the inner workings of how to ensure security around a mega-sporting event.

68 JOURNEY TO THE CLOUD The growth experienced by the Middle East region’s telecom

industry is unprecedented due to the high demand for smart personal devices, and also mobile data services gaining prominence in the business models of Middle East operators as many transform from voice-centric to data-centric.

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from the desk

September has been a tumultuous month, especially for those of us who work in the media. The new cybercrime law makes every journalist think twice before he or she reacts, tweets or expresses his or her opinion on the social media. That in essence curtails press freedom and questions the cybercrime law. The Committee to Protect Journalists (CPJ) has warned that the broad language of the new cybercrime law could be used to restrict press freedom and jail journalists.

“This law is ostensibly to stop cybercrime but at least two articles will severely re-strict freedom of expression, which is not a crime,” said Sherif Mansour, CPJ Middle East and North Africa Coordinator, in a statement. The two articles that Mansour and the rest of the media are concerned about are Article Six which stipulates up to three years’ imprisonment and a fine of QR500,000 ($137,300) for setting up or managing a website that spreads “false news aimed at jeopardising state security”, and Article 8 which stipulates a jail term of up to three years and a fine of QR100,000 ($27,500) for any “violation of social values, or publishing news, pictures, audio or video recordings that are related to individuals’ private life and family, even if true”. Qatar Today tries to catch the mood of the media and the general public about this important law.

While a cybercrime law is pertinent in any country, especially in Qatar which has a higher ambition of broadband access to 95% of the country by 2015 and where a large population is engaged in social media interaction, the fact that it has included aspects which should ideally be within any country’s media law worries most of us here. A sim-ilar updated Cybercrime Law of 2012 by UAE has seen a widespread crackdown on dis-senting speech. Last year, 69 Emiratis were convicted of attempting to overthrow the government, but critics said most of the defendants were merely guilty of speaking out against the government and calling for reform.

This will only add to the already increasing allegations against the country in the face of the 2022 World Cup Bid, which has been mired in controversy amid allegations of bribery and questionable labour conditions for those building the stadiums and infrastructure.

Meanwhile, within the country, not everything looks as bleak as portrayed by the for-eign media; here we have family businesses taking steps to go global while keeping val-ues inherent, we have experts coming to Qatar to share expertise on hosting events of such scale, experts who have helped pen the winning bid and stand by the truthfulness behind it and waste generation, both construction-related and domestic, which could be another elephantine concern if not put to value.

Qatar Today brings to its readers all the stories that make the country eventful with a potpourri of achievements, tribulations and some downright failures.

SINDHU NAIR

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How does QT choose the top 10 companies? As someone who has just made the country my home, I am keen to find out.

SCOTT MATHERS

It was interesting to read the grand incubation experiment. Well explained piece.

EDWARD D’LIMA

Bold piece by Qatar Today on labour recruitment reforms. It is optimistic but I am still skeptical that things will change.

AMINA MALLIK

We have just moved to the country and are avid film buffs. I was excited to read about the new cinema experience in Qatar. Definitely going to make it a point to visit with my family, soon.

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Salman A. Al-Ansari@QBICQA@Qatar Today@Ayshaalmproud of you

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Dr. Amal Al-MalkiAmazing young woman! Interview with @Ayshaalm “The Voice of her Generation” by @Qatar Today.

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affairs > local

AT THE UNITED NATIONS

The Emir's second speech at the UN General Assembly

in New York was strongly critical of Israel, which has

been attacking Qatar for its association with Hamas and

accusing it of sowing discord in the region. HH Sheikh

Tamim urged members not to entertain diplomatic ties with

Israel following its excesses in Gaza this summer.

A large part of the interview focused on foreign policy and about Qatar’s support for certain Islamic groups. “I know that in America and some countries they look at some movements as terrorist movements... But there are differences. There are

some countries and some people who think that any group which comes from Islamic background are terrorists. And we don’t accept that,” he said. He reiterated Qatar’s staunch opposition to the Bashar Al Assad’s regime in Syria, Qatar’s desire to go back to its role as a ne-gotiator, and about Qatar lending it’s support to the Egyptian govern-ment, not the Muslim Brotherhood in particular.

THE GERMAN AFFAIR

THE EMIR HH SHEIKH TAMIM BIN HAMAD AL THANI’S visit to Germany this month was significant in many ways. Speaking for the first time on the labour issues concerning migrant workers, he said that “there have been errors and problems, and we don’t say we are an ideal state that makes no mistakes”. He also pointed out that “we have tackled a lot and have initiated many changes ...and we are working seriously on improving this situation”. He reiterated Qatar’s staunch stance against terror and that it “has never and will never support terror organisations”. This follows a German minister’s televised interview a few weeks ago where he stated that Qatar was involved in funding ISIS. After talks with the Emir, German Chancellor Angela Merkel said she has “no reason to doubt Qatar’s commitment to fighting Islamic State”. The visit is expected to deepen economic ties between the two countries especially in the energy sector, which has become a concern for Europe due to the turmoil in Ukraine. A

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THE EMIR ON AIR

In his first television interview as the Emir of Qatar, HH Sheikh Tamim spoke to CNN’s

Christiane Amanpour about Qatar’s foreign policy, laws enacted to protect migrant

workers, and Qatar’s readiness to host a great world cup in 2022.

THE EMIR ABROAD

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QATAR TODAY > OCTOBER 2014 > 15

Over 20 countries, including ten Arab states, participated in the meet-ing called in August by President François Hollande. There was re-

sounding support for the Iraqi government in its fight against the terror group, which had only the previous day beheaded Brit-ish aid worker David Haines. Though it was clear that boots on the ground was not an option for many present there, including the five permanent members of the Se-curity Council, there was a lot of promise

around air strikes, supporting Iraqi troops through weapons and training, and human-itarian aid. Iran, which is clearly against any action that might destabilise its ally, Bashar Al Assad, was conspicuous by its absence. After President Barack Obama’s speech about “degrading and ultimately defeat-ing” ISIS, the US, along with a coalition of 40 countries, notably Qatar, Saudi Arabia, Bahrain and the UAE, has led several air strikes on oil refineries controlled by ISIS both in Syria and Iraq.

Judge Eckert has said that, though the details of the report will not be made public in ac-cordance with FIFA’s protocol, the “first public statement of our position with regards to this report” will be made at the beginning of November. However, a chorus of voices around the world, including Garcia’s, has urged FIFA to make the findings public. FI-

FA’s Asian Vice President Prince Ali bin Al Hussein expressed his wish on Twitter for the report to be published. “This will only help the football community move ahead in reform-ing our institutions in the best interest of the sport,” he said. Meanwhile, FIFA Executive Committee member Theo Zwanziger said that Qatar could be stripped of the tournament over the extreme heat in the country. FIFA refused to comment on this, saying it was Zwan-ziger’s personal opinion.

The investigation into the bidding process for the 2018 and 2022 World Cup tournaments, chaired by former US attorney general Michael Garcia, has been submitted to FIFA’s Chief Judge Hans-Joachim Eckert, who will soon dole out sanctions, if needed.

Former host of the Asian Games, Qatar had a sour experience in South Korea after the women’s basketball team withdrew from the competition, refusing to comply with the hijab ban.

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Foreign Minister HE KHALID BIN MOHAMMED AL ATTIYAH attends the meeting of over 20 leaders at the French Foreign Ministry in Paris to discuss strategies and allot roles to tackle the threat of ISIS.

THE WORLD DEBATES ISIS

BRING IT TO LIGHT

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QATAR AT THE ASIAN GAMES

WITH THE SUCCESS OF ES’HAIL 1, THE QATAR SATELLITE COMPANY, ES’HAILSAT IS ALREADY PUSHING AHEAD WITH PLANS TO EXPAND ITS SATELLITE FLEET. FOLLOWING

AN INTERNATIONAL CONSULTATION, MITSUBISHI ELECTRIC CORPORATION

(MELCO) HAS BEEN SELECTED TO BUILD THE COMPANY’S SECOND SATELLITE,

ES’HAIL 2, WHICH IS EXPECTED TO LAUNCH AT THE END OF 2016. AND

DISCUSSIONS ARE ALREADY ONGOING WITH CUSTOMERS AND STAKEHOLDERS TO DEFINE THE REQUIREMENTS FOR A

FURTHER SATELLITE – ES’HAIL 3.

ES’HAIL 2 MANUFACTURING

AWARDED TO MELCO

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affairs > local

It was a big day for Qatar Airways, which received the world’s largest aircraft, A380-800, from Germany; the big bird landing at the Hamad International Airport on a Thursday evening. “A380-800 will be the flagship of Qatar Airways and will be deployed on the destinations frequented by Qatari nationals like London and Paris,” the airlines’ Group CEO Akbar Al Baker told reporters. “Each aircraft is estimated to cost $380 million (QR1.38 billion) and we will demand that the company offer us discounts when we take more such aircrafts," he said adding that three more A380s are expected to be delivered by Airbus by the end of this year and the much-awaited A350 will also join the growing fleet of the airlines around same time. Qatar Airways has placed orders for ten A380s (eight in 2004 and two in 2010), becaming the 12th operator of the type in the world. From October 10, the aircraft (QR 001) will commence operations on the London Heathrow route and to Paris later, he added.

A380 ARRIVES IN DOHA

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THE NUMBERS GAMEBARCLAYS WEALTH INSIGHTS

Over

60% of High-Net-Worth Individuals in Qatar increased their wealth

during the global economic downturn

82% of the wealthy residing in Qatar attribute their stay in the country

to its economic opportunities and national security.

98% of HNWIs in Qatar acquired their wealth in less than 20 years, with 38% successfully reaching the HNW status in less than ten years.

AMERICAN EXPRESS MIDDLE EAST

The average spending of Qataris on luxurious experiences was

QR9,100 ($2500) per month compared with

QR5,500 ($1500) being spent by other citizens of the GCC region.

70% of Qataris prioritised spending on luxury experiences rather than

on luxury goods like fashion, cars and jewellery.

CLOCKWISE FROM LEFT: FC Barcelona players Luiz Suarez (L) and Carlos Puyol with Qatar Airways CEO Akbar Al Baker in Doha during the inauguration of the first Business Class Airbus A380; the lounge inside the A380; the first A380 touches down at Hamad International Airport

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The lemon yellow-roofed taxis will start rolling out immediately, it was announced at the unveiling ceremony held under the patronage of HE Jassim Saif Ahmed Al Su-laiti, Minister of Transport and Chairman of Mowasalat. Group Executive Director of Cars Taxi Group, Abdulla Sultan Al Sabbagh, was enthusiastic in his appreciation

for Karwa, saying the process of getting the deal off the ground was extremely easy and ef-ficient. “500 vehicles will be added to the fleet in phase one, followed by 300 cars. We are bringing many innovative services like hybrid cars, vehicles for the physically challenged and for women and families,” he said. He further promised that the whole fleet of cars will be equipped with Mowasalat-approved meters, navigation systems, taxi tracking and dis-patch systems, as well as speed monitoring to ensure taxis stay within 100 km per hour within city limits.

RISK OF DIABETES IN CHILDREN

A collaborative study conducted by Weill Cornell Medical College in Qatar and Qatar Diabetes Association has found that up to 4.2% of secondary school students could be prediabetic, with the risk being significantly higher among boys. The research involved four independent schools and a total study sample of 1,694 students aged between 11 and 18.

CARS TAXI LAUNCHES NEW FLEET UNDER KARWACars Taxi, a taxi franchise operator with a presence in several Gulf cities, launched 500 new taxis under Karwa, in partnership with Qatar-based Profit Trading & Contracting Company.

SO CLOSE QATARI ATHLETE MUTAZ ESSA

BARSHIM CAME EXTREMELY CLOSE TO BREAKING THE 2.45 METRE

HIGH JUMP WORLD RECORD AT THE DIAMOND LEAGUE SERIES IN

BRUSSELS. HE COMPLETED A 2.43 METRE JUMP WHILE HIS CLOSEST

COMPETITOR CAME IN SECOND AT 2.40 METRES.

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CYBERCRIME LAWThe long-expected cybercrime draft was signed into a law last month. While it has several important articles addressing the scourge of hacking, online identity theft and malicious attacks, there are a few provisions that were too broad and vague and could potentially risk freedom of expression online.

While the law, which contains five chapters and 54 articles, doles out strict pun-ishments for electronic forgery of official documents and producing, promoting, using or importing and distributing child pornography and hacking, it also has reserved similar harsh sentences and fines for “spreading false news”, “destab-

lising national security”, “violating any of the social values and principles”, or “aggressing another person with libel and slander”. Many worry that these ambiguous terms could be stretched to apply to any online conversation. While industry leaders were happy with the cybercrimes that the law promises to address, journalists worried about the implications of this small but significant part of the legislation. We bring you two divergent and equally compelling points of view on the law which came into immediate effect.

As Qatar’s first digital media organisation, we at Doha News are concerned about the potential criminalisation of free speech in Qatar under the new cybercrime law. The

legislation goes beyond the scope of cyber-safety in a way that has a chilling effect on media freedom and free speech – rights that are supposed to be enshrined in Qatar’s constitution. We take issue specifically with the so-called content crimes outlined in the new legislation.

The vagueness of these provisions is troubling. There is no definition of what exactly violates the country’s social values, and what the boundaries are between a person’s public and private life. Furthermore, the ability to hold individuals accountable for their actions is weakened if such information becomes off-limits.

While this law has serious implications for

journalism in Qatar, we are also concerned about how the legislation will be applied to the general public. Qatar is one of the most connected countries in the world, with more than 90% of its residents enjoying online access. While it is now against the law to incite, aid and facilitate the publication of offensive material, it remains unclear whether someone could be jailed or fined for simply retweeting or sharing a post on Twitter or Facebook.

We urge authorities to remove the content crime provisions of the new law. At the very least, the government should clearly define what content is unacceptable and spell out what this law means for journalists and internet users in Qatar. Finally, we hope that when this law is applied, the nation’s leaders remember what they have been telling the rest of the world for the last several months: Journalism is not a crime.

The new legislation was the need of the hour. It appropriately defines the most common and major crimes committed using technology and internet. The penalty provisions are also

an adequate deterrent. It is said that on average, 20 identity thefts take place globally every minute. Reports also indicate that cybercrimes have now surpassed illegal trafficking in drugs as a means of deriving illegal money. In turn, this can result in the commission of other serious crimes such as money laundering and terrorism financing. The new law appropriately addresses the menaces of identity theft, hacking, cyber espionage, financial fraud, slander, IP infringement, child abuse, and the still worse threat of cyber terrorism.

Anti-cybercrime legislation has drawn criticism in all countries when enacted. The critics must recognise the fact that absolute freedom in cyberspace may well be disastrous for any society. Public order, social values and national security are also of the utmost importance. Interpol differentiates cybercrimes into three broad categories: (i) attacks against computer hardware and software; (ii) financial crimes and (iii) abuse (especially of young people). The new law addresses all these threats, and therefore can be considered at par with international standards.

A major hurdle in the endeavour to curb cybercrimes, unlike physical crimes, is the cross-border commission of offences. An offence is often committed from across the border of the country where its victim is situated. Often the suspect escapes to another jurisdiction to avoid the clutches of law. This necessitates the need for co-operation between countries in exchanging information as well as extraditing criminals wanted for cybercrimes. The newly enacted cybercrime prevention law provides for co-operation between investigating agencies and at the same time ensures that no foreign state shall use these provisions to further a hidden agenda of chasing out a person for reasons such as political rivalry.

The cyber world undergoes constant and rapid changes as new technologies are invented or developed every day. Criminal minds are equally creative and talented enough to invent new ways of making use of the development in technology to make illegal money; to spread hatred; and to defame nations, religions, families or individuals. The laws addressing cybercrimes shall therefore be subject to constant updating to keep pace with the developments in technology. The new law is indeed a welcome move in the right direction.

ABDUL RASHEED K PLegal Consultant, Law Offices of Gebran Majdalany

SHABINA KHATRIExecutive Editor and Co-founderDoha News

affairs > local

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business > bank notes

Ecobank is the leading pan-African bank with a presence in 36 countries across the African continent and in four other countries across the globe. Ecobank is one of the top three banks (by assets) in 14 of the countries in which Ecobank is present.

As at June 2014, Ecobank had $23.4 billion (QR194.38 billion) of assets and had generated $255 million (QR819 million) of profit before tax (for the six months to June 30, 2014) and has 1,241 branches, 2,500 ATMs and 16,245 POS terminals servicing over 10.8 million customers. With 20,114 employees, Ecobank is the largest employer in the financial sector industry in Middle Africa.

QNB ACQUIRES STAKE IN ECOBANKQatar National Bank (QNB) has acquired an additional holding of 11% in Ecobank Transnational Incorporated (Ecobank) based at Lome in Togo in Middle Africa. With this, the total stake of QNB has increased to 23.5%.

“Inline with the Qatar National Vision 2030, the financial sector has evolved and developed significantly in recent years, and global interest in the opportunities presented by the rise of Qatar is at an all-time high.”RICHARD BANKSRegional DirectorEuromoney Conferences

Sheikh Abdullah, who is also chairman of QDB, said this while ad-dressing a meeting at Qatar Business Incubation Centre (QBIC). QDB’s support for export promotion under Al Dhameen (an export guarantee programme) has reached QR500 million, while the fund-

ing under the portfolio programme for Small and Medium Enterprises (SMEs) has also reached about QR500 million.

He also highlighted that QDB is providing all possible assistance to small and medium-sized enterprises, such as providing baskets of tools, funding that is required to establish and sustain new projects, similar to the way it did recently in the case of Al Furjan markets (neighbourhood retail shopping centres being developed across the country) by extending financial assistance of QR500 million.

QDB PROJECT FUNDING TOUCHES QR3.5 BILLIONQatar Development Bank (QDB) has funded projects worth QR3.5 billion as part of its efforts to promote economic diversification, according to HE Sheikh Abdullah bin Saud Al Thani, Governor of Qatar Central Bank (QCB).

Non-performing loans (NPLs) are forecast to remain low in 2014-16 as asset quality is supported by the strong economic environment and the sizable proportion of low-risk loans to the government. Going forward, low provisioning requirements and efficient cost bases will also support banks’ profitability, the QNB report adds.

Qatar’s loan-to-deposit ratio, currently in excess of 100%, is expected to decline gradually to reach 99% by 2016, according to a report by Qatar National Bank. This is due to a more moderate growth in lending compared with a buoyant deposit growth.

QATAR’S LOAN-TO-DEPOSIT RATIO TO DECLINE

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OIL GLUT?Saudi Arabia will need to keep cutting oil output to sustain prices above $100 (QR364) a barrel, even after the kingdom’s largest reduction in two years, according to BNP Paribas SA and Societe Generale SA, as reported by Bloomberg.

The world’s biggest crude exporter told OPEC that it pumped 408,000 bar-rels a day fewer last month, about as much as Australia produces. Output

rose in Iran, Iraq and Nigeria, adding to supply that drove benchmark Brent crude futures below $100 (QR364) this month for the first time since June 2013. Saudi Arabia probably will have to cut a similar amount again to stabilise prices, the banks said.

Global oil demand growth this year will be the weakest since 2011, just as the U.S. shale boom means oil production from countries outside OPEC rises by the most since the 1980s, according to the Interna-tional Energy Agency. The glut is prompt-ing most of OPEC’s Middle Eastern mem-bers, including Saudi Arabia, to cut prices to customers.

According to the OPEC Secretary-General Abdalla El-Badri, the group may cut production next year.The Organization of Petroleum Exporting Countries’ daily output target could fall by 500,000 barrels to 29.5 million barrels in 2015, El-Badri said at OPEC’s secretariat in Vienna after talks with Russian Energy Minister Alexander Novak.

OPEC TO CUT PRODUCTION

RasGas, the developer and operator of the project, in a press statement announced that Train 1 of the historic BGP is more than 95% complete and is rapidly ramping up for the first production of clean-burning natural gas by early next year.

Once fully completed, Trains 1 and 2 will produce around 1.4 billion cubic feet a day (bcfd) of clean-burning natural gas from the North Field. Construction work on Train 2 is also progressing well and expected to be completed by the middle of 2015. Combined with RasGas’ other facilities production (LNG and sales gas), the BGP is set to make RasGas one of the largest single gas processors in the world with a production capacity of 11 bcfd (the equivalent of almost two million barrels of oil).

GAS PRODUCTION FROM BARZAN FROM 2015Train 1 of the ambitious multi-billion dollar Barzan Gas Project (BGP), a joint venture of Qatar Petroleum and ExxonMobil Corporation, which will play a significant role in meeting Qatar’s rapidly growing domestic energy demand, will start operation from the first quarter of 2015.

Barrels Per Day (BPD)BARZAN WILL PRODUCE

22,000 BPDField Condensate

34,000 BPDEthane

6,000 BPDPlant Condensate

I0,500 BPDPropane

7,500 BPDButane

business > oil&gasTHE TREMENDOUS IMPORTANCE

OF HEALTH, SAFETY AND ENVIRONMENT (HSE),

SPECIFICALLY IN THE ENERGY SECTOR, HAS ENCOURAGED

KEY PUBLIC AND PRIVATE ORGANISATIONS TO PRO-

ACTIVELY THROW THEIR ALL-OUT SUPPORT BEHIND THE 10TH

ANNUAL HSE FORUM IN ENERGY SCHEDULED TO TAKE PLACE

BETWEEN NOVEMBER 3 AND 5 2014 AT THE GRAND HYATT HOTEL

IN QATAR.

HSE GAINS

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business > realty check

The hotel currently has 470 guest rooms, including 70 suites. Constellation plans to renovate Le Grand at an estimated cost of €60 million (QR283.16 million).

The hotel is located on the Rue Scribe in Paris’s 9th arrondissement (district) and overlooks the Palais Garnier, which houses the Paris Opera. Le Grand was built by the wealthy Pereire brothers. Construction be-gan in April 1861 and it was opened a year later.

The imposing property was part of Baron

Haussmann’s massive reconstruction pro-gramme that transformed the face of Paris. It was constructed in the classic Haussman-nian style, with wrought iron balconies and a mansard roof with attic rooms lit by dormer windows.

Le Grand has been part of the IHG brand since 1982. IHG will continue to manage the hotel under a 30-year contract. Constellation also recently purchased the InterContinental London Park Lane and the InterContinental New York Barclay hotels.

InterContinental Hotels Group (IHG) has agreed to sell the Le Grand Hotel to the Qatari group Constellation Hotels Holding Limited for €330 million (QR1.56 billion).

QATAR GROUP TO ACQUIRE PARIS HOTEL

“Rents might increase beyond control if affordable housing stocks are not built for limited-income people following the crackdown on illegally partitioned villas. The government should also consider freezing rent increases by owners in view of the soaring housing rents.”AHMED JASSIM AL JOLO PresidentQatar Society of Engineers

GCC NATIONS IN DUBAI PROPERTY DEALS

The total investments of UAE and GCC citizens in the Dubai property market has ex-ceeded QR19 billion ($5.13 billion) in the first half of 2014, according to a report from Dubai Land Department. UAE citizens alone contributed the lion’s share of QR12.46 billion from as many as 2,513 transactions, the report says.

ESTIMATED COST

QR283.I6 MILLION

GUEST ROOMS

470 SUITES

70

The total value of real estate deals that took place between August 31 and September 4 stood at QR431.36 million, according to data posted on the website of the Ministry of Justice.The deals included open plots, two-storey villas, residential complexes and supplements. The sales mostly took place in the municipalities of Umm Salal, Al Khor, Doha, Al Rayyan and Al Wakra.

REAL DEALS IN QATAR

II2IQR3.34

BILLION

53%

QRI.45BILLION

23%

QR83I.8MILLION

I3%

QR477.9MILLION

7%

QR244.9MILLION

4%

II3 263 --- ---

NUMBER OF TRANSACTIONS TOTAL VALUE PERCENTAGE

SAUDI ARABIA QATAR KUWAIT OMAN BAHRAIN

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news bites > regional

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R E T R I B U T I O N This US Air Forces Central Command photo released by the Defense Video & Imagery Distribution System (DVIDS) shows a US Navy F-18E Super Hornet approaching to receive fuel from a KC-135 Stratotanker over northern Iraq after conducting air strikes in Syria, September 23. These aircraft were part of a large coalition strike package that was the first to strike ISIL targets in Syria.

AFP PHOTO / US AIR FORCE / STAFF SGT. SHAWN NICKEL

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BUILDING BRIDGES WITH BRAZIL

development > listening post

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QATAR TODAY > OCTOBER 2014 > 27

FROM FOOD SECURITY AND FOREIGN POLICY TO SPORTS AND CULTURE, MANY TIES UNITE THE FAR-FLUNG AND DIAMETRICALLY OPPOSITE COUNTRIES OF QATAR AND BRAZIL. IN THIS EXCLUSIVE WITH QATAR TODAY, HIS EXCELLENCY THE AMBASSADOR OF BRAZIL TO QATAR TADEU VALADARES ELABORATES ON THIS MULTI-FACETED BOND.

We are bang in the middle of the 2014 Qatar-Brazil Year of Culture. Official-ly launched on January 27 of this year and in the presence of His Excel-

lency Dr Hamad Al Kuwari, Minister of Culture, Arts and Heritage of the State of Qatar (who has also served as Ambassador of Qatar to Brazil), what a year to celebrate our commonalities! Like all eyes around the world, Qatar’s too turned to Brazil for the 2014 FIFA World Cup, not only to join in and commemorate the spirit of the game but also to observe, learn and understand, for when our time comes in 2022. But that was just the beginning. From fashion design and food to art and photography, Brazilians and Qataris enthusiastically embraced the common platforms to discover and share ideas. On this note, we caught up with His Excellency Ambassador Tadeu Valadares who insists that, though diplomatic ties be-tween the two countries might be in their infancy (diplomatic relations were estab-lished way back in 1974, Brazil opened its embassy in Doha only in 2005 and Qatar, after a temporary eight-year hiatus short-ly after it opened its embassy in Brasilia in 1997, reopened its diplomatic post in 2007), both have “come a long way in terms of increasing and strengthening political,

tourist, commercial, and cultural ties.” The congruence in the fundamental way the two countries view the future and their place in it has helped speed this relationship along. “Both our countries share a sharp view of the future. In terms of foreign policy, we are committed to building a more democratic and pluralistic international community, an environment where the once-called “pe-ripheral” countries deserve to be heard, a global structure where emerging countries will prosper and thrive,” he says.

Trades and tiesThis underlying common philosophy has been continually cemented with several and frequent high-level visits and delega-tions between the two. “His Highness the Father Emir, HH Sheikh Hamid bin Khal-ifa Al Thani visited Brazil in 2010 and last September, HH Sheikha Moza bint Nasser led a high-level Qatari delegation to Pará, in the Amazon region. Former President of Brazil Luís Inácio Lula da Silva was in Doha in 2009, 2010 and 2012,” Ambassador Va-ladares mentions. “In addition to this, there has been exchange of important delega-tions for events like Doha Goals, WISE and World Social Security Forum” As recently as March 2014, the Governor of the Brazil-ian Federal District, Agnelo Queiroz, signed a memorandum of understanding in Qatar

BILATERAL TRADE INCREASED BY

3I5% BETWEEN 2009 AND 2013,

JUMPING FROM

$22I MILLION

(QR805 MILLION)

TO

$9I5 MILLION

(QR3.33 BILLION)

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28 > QATAR TODAY > OCTOBER 2014

with the Municipality of Doha, exploring “bilateral convergent interests of Brasília and Doha in several spheres, such as the use of advanced technologies in order to better public services offered to citizens”.

While all this was happening, bilateral trade was burgeoning at an unprecedented rate. “Between 2009 and 2013 the total bi-lateral trade grew 315%, jumping from $221 million (QR805 million) to $915 million (QR3.33 billion),” the Ambassador says, noting that this was mainly due to a consid-erable growth in Brazilian imports, making it the 17th largest market for Qatari exports. “Brazil imports a significant amount of Liq-uefied Natural Gas and fertilizers, whereas major Qatar imports consist of iron ore, aluminum and food, mostly poultry,” he added.

Brought together by businessBrazil aims at being a valuable partner to Qatar in its pursuit of food security. Already a major exporter of food to Qatar and with known competency in producing agricul-ture machinery, Brazil has “real potential in terms of expanding its presence here”, according to Ambassador Valadares, who continues, “especially if we manage to bet-ter explore the opportunities that exist due to food and beverage consumption generat-ed by the demand of Qatar´s growing pop-ulation.”

Apart from this, Brazilian businesses are aware of the market opportunities thrown open in Qatar due to its vast infrastructure expansion. “Brazilian entrepreneurs have a recognised expertise in terms of designing and developing huge projects, from roads to airports, hydroelectric power plants, entire cities, and so on,” he mentions, indicating that it can be put to good use here.

Conversely, he points out that the thriv-ing Brazilian investment climate is ready for big players like Qatar to jump in, as they have in the recent past. “Brazil, like Qatar, is undergoing major expansion in its infra-structure and offers good opportunities for Qatar Investments Authority and other Qa-tari financial actors. In fact, Qatar Invest-ment Authority is already present in Brazil, mainly in the real estate and financial sec-tors. So far, the highest Qatari investments in Brazil have been the acquisition of the World Trade Center São Paulo, in March 2012, by TFI-Hines [Brazil Income Real Es-tate Fund]; and the purchase of $2.7 billion (QR9.8 billion) in Santander Brazil bonds (5% of the share capital of the bank) by Qa-tar Holding in October 2010.” The Brazil-ian Congress has recently passed new and

more flexible legislation concerning foreign ownership in the country’s ports and the Ambassador considers the modernisation of Brazil’s ports another area that Qatari investors could potentially find attractive.

A year to rememberMore than commercial and political ties, the Ambassador appears genuinely in-terested in discussing the efforts to bring together the peoples and cultures of the two countries, especially through the 2014 Qatar-Brazil Year of Culture. Calling it “a major cultural and intellectual joint effort”, Ambassador Valadares counts among its successes the special Qatar-Brazil pavil-ion at Qatar International Food Festival (QIFF) last March at the MIA Park and the photography exchange which resulted in “Qatar-Brazil: a journey from the Amazon to the Desert” in Katara. He also highlights the Brazilian Cinema Showcase at the Mu-seum of Islamic Art, where every month Doha Film Institute screens the best picks from Brazilian cinema. “I would definitely recommend keeping an eye on the calendar for the Showcase, as we will still have plenty of good Brazilian movies to be screened in Doha during the year,” he says.

But perhaps the most exciting part of the exchange culminated in June and July of this year with the FIFA World Cup Bra-zil, giving experts in Qatar the chance to share first-hand the Brazilian experience concerning preparations for this mega event. “Two Qatari missions were sent to Brazil in the context of the World Cup. Last April, three Supreme Committee for Delivery and Legacy representatives par-ticipated in a Monitoring Operation or-ganized by the Government of Brazil. The second Qatari mission was sent to Brazil during the tournament. It had more than 100 people, among Qatari nationals and ex-pat government officials from institutions such as Ashghal, the Ministry of Interior and, of course, the Supreme Committee,” Ambassador Valadares says. “The mission was divided into five different groups that visited four Brazilian World Cup host cit-ies. Besides, Qatar also organised a student exchange programme called 'Generation Amazing' where 22 young students were taken to Brazil during the World Cup, in order to gain experience simply by being present at the event.” He sincerely wishes that these missions will eventually come in handy for the Supreme Committee in its own process of preparing for the 2022 World Cup, expressing certainty that it will be a huge success

ACQUISITION OF THE WORLD TRADE CENTER SÃO PAULO BY TFI-HINES [BRAZIL INCOME REAL ESTATE FUND]; AND THE PURCHASE OF

$2.7 BILLION (QR9.8 BILLION) IN SANTANDER BRAZIL BONDS (5% OF THE SHARE CAPITAL OF THE BANK) BY QATAR HOLDING

TOP QATARI INVESTMENTS IN BRAZIL INCLUDE

TWO QATARI MISSIONS WERE SENT TO BRAZIL IN THE CONTEXT OF THE WORLD CUP: THREE SUPREME COMMITTEE FOR DELIVERY AND LEGACY REPRESENTATIVES WHO PARTICIPATED IN A MONITORING OPERATION LAST YEAR IN APRIL, AND A SECOND ONE SENT DURING THE TOURNAMENT CONSISTING OF MORE THAN 100 PEOPLE FROM THE COMMITTEE, ASHGHAL, THE MINISTRY OF INTERIOR, ETC.

development > listening post

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The index showed that real estate prices were 18.5% higher in June than in January, based on Min-istry of Justice data on land and property transactions.

It is not just prices that are ris-ing, but also the number of transactions be-ing conducted. According to a report from property developer the Ezdan Holding Group, y-o-y sales jumped by nearly a third in June, with land purchases making up an increasing proportion of transactions. Of the 627 deals struck in June, 446 were for plots of land, indicating increased ac-tivity from developers rather than sales of completed units or resale activity.

With prices and demand outstripping supply, there is some concern the real es-tate sector could impose unwanted pres-sures on the economy, according to a report by the Samba Financial Group. The report, issued at the end of July, said that while the y-o-y rate of price growth had moderated somewhat compared with 2013, rising de-mand would continue to push up prices in the short to medium term.

Supply & demandOther economists suggest the large in-creases in real estate prices are in line with the fundamentals of Qatar’s fast-growing economy and rapid population growth.

business > viewpoint

Real estate prices in Qatar hit

record highs in June after rising

The average prices for land, commercial and

residential properties in June was

28.9% 20%Directed to the real estate

and contractor market

QR109.2 billion

QATAR’S REAL ESTATE SECTOR HEATS UP

Real estate prices in Qatar hit record highs in June after

rising 28.9% year-on-year according to the Real Estate Price Index (REPI) published

by the Qatar Central Bank (QCB), its most recent data. The average prices for land, commercial and residential

properties in June were 20% higher than the previous peak

of September 2008, the QCB said.

higher than the peak of September 2008.

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QATAR TODAY > OCTOBER 2014 > 31

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

“While base (population) and income effect combined have increased by 345% since 2006, the QCB REPI has only risen by 326%, suggesting that real estate prices continue to be justified by Qatar’s econom-ic fundamentals,” said QNB Economics in a note published at the end of August. “Fur-ther rapid increases in real estate prices could, however, signal overheating and a potential for another real estate bubble,” it added.

According to the Samba study, demand is being fuelled by an influx of foreign work-ers engaged on infrastructure and develop-ment projects, though this pressure on sup-ply will likely ease towards the end of the decade as the pace of projects is scaled back.

The residential market will remain sig-nificantly undersupplied for at least the next five years, according to property con-sultancy, Colliers International. “Doha remains an upbeat market that is expand-ing in terms of overall offering while also bringing depth to the market,” said the firm in a report published in June, adding that Doha had a shortfall of almost 50,000 res-idential units. With a projected compound average growth rate of just 3% per annum, down from earlier estimates of 8%, Colliers

said the supply/demand gulf would not be bridged quickly.

Qatar’s population increased at dou-ble-digit rates last year, and, as labour requirements gather pace across all sec-tors, this gap is set to widen substantially, fuelling price and rental costs.

The rise in population numbers is also forecast to feed into demand for retail and office space. However, in the case of the latter, demand will remain subdued due to high levels of space already available or scheduled to be completed over the course of this year and next.

Property development driving bank lending The growth in real estate activity and sub-sequent rise in the building sector to meet this demand are driving bank lending levels. In July, the QCB issued a report showing that loans to the real estate and contract-ing sectors accounted for just over 20% of all credit advanced by Qatar’s commercial banks. According to the bank, of total loans of QR546 billion ($150 billion), QR109.2 bil-lion ($30 billion) had been directed to the real estate and contractor market, of which QR84.81 billion ($23.3 billion) was to the former.

This high level of lending to the sec-tor leaves Qatar’s banks exposed should there be a sharp downturn, ratings agency Standard & Poor’s warned in May, saying setbacks to the property market – though unlikely – could pose a risk.

Surging demand for property could prompt developers to launch more projects through the end of 2014 and into 2015. Real estate prices and rental costs will continue to climb for the foreseeable future, though with the experience of the economic down-turn of 2009 still fresh, regulators will like-ly move to contain any bubble, should it threaten to emerge

Real estate prices were

18.5%higher in June

than in January 2014.

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news bites > world view

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A VOT E F O R U N I T Y

A pro-independence supporter is pictured in George Square in Glasgow, Scotland, on September 19, following a defeat in the referendum on Scottish independence that left the centuries-old United Kingdom intact but paved the way for a major transfer of powers away from London.

AFP PHOTO / ANDY BUCHANAN

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The term essentially describes the accident of finding something good or useful, while not specif-ically searching for it. In recent years, there has been an increased emphasis on the important role

that serendipity can play in innovation. As so often when new trends in research and innovation are involved, Silicon Valley companies have been at the forefront of embracing it.

Google has announced that its 1.1 million square feet headquarter complex near San Francisco will be designed to ensure “ca-sual collisions of the work force. You can’t schedule innovation. We want to create

opportunities for people to have ideas and be able to turn to others right there and say, ‘What do you think of this?’”

Meanwhile, Google’s competitor Yahoo banned its employees from working from home last year, saying that the rationale behind the move was that “some of the best decisions and insights come from hallway and cafeteria discussions, meeting new people, and impromptu team meetings.”

Role of serendipityBoth initiatives go back to the idea of cre-ating serendipitous moments. The role of serendipity in innovation is widely ev-idenced, with numerous major scientific

When British writer Horace Walpole coined the term

‘serendipity’ in the 18th century, he referenced it to

the Persian fairy tale The Three Princes of Serendip,

whose main protagonists “were always making

discoveries, by accidents and sagacity, of things they were

not in quest of".

WHAT’S THE ROLE OF SERENDIPITY?

development > viewpoint

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QATAR TODAY > OCTOBER 2014 > 35

breakthroughs attributed to ‘acciden-tal discoveries’, among them the cholera vaccine in 1879 by French chemist and microbiologist Louis Pasteur.

To be sure, research and development (R&D), in particular on a corporate level, will always have to have a large element of structure and focus to it. After all, it is this type of R&D that produces essential, bread-and-butter-type innovations for compa-nies, whether in the oil and gas industry or other sectors. As such, structured R&D will continue to play an important role. Just don’t expect too many groundbreaking discoveries from it.

In the words of Stefan H Thomke, Wil-liam Barclay Harding Professor of Busi-ness Administration at Harvard Business School: “Focused research gives you good products. Serendipitous research gives you great products.”

This is equally relevant for Gulf States that are only just embarking on their jour-ney towards building world-class regional R&D centres and for companies or research institutions involved in R&D that are work-ing towards groundbreaking innovations.

There are different ways of bringing about the “aha” kind of moments that po-tentially lead to breakthroughs. Applying the so-called proximity principle, which promotes physical proximity as a driver behind creative and innovative thinking, is one of them. With this in mind, research fa-cilities may be designed to enable and facil-itate unexpected connections intentionally through face-to-face interaction – as will be the case with Google’s new headquarters. Similarly, creating other platforms that allow scientists and researchers to meet, exchange and develop views, ideas and thoughts also had a role to play.

This is where R&D and education clus-ters such as the Qatar Science & Technolo-gy Park (QSTP) or Masdar in the UAE come into play. The establishment of such cen-ters has provided an important foundation for countries’ long-term R&D ambitions, which have been drawn up with a goal to transform the countries into knowledge economies.

More R&D centresMajor international energy companies are among those that have set up shop at the new research and innovation centres in

the Gulf. The oil and gas industry has been at the heart of some of the world’s most ground-breaking innovations. Whether in liquefied natural gas, gas to liquids, deep water drilling or shale developments, it has been this fundamental commitment to in-novation that has made these technologies possible. This wouldn’t have been possi-ble without constantly striving for new innovations and dedicated research.

The availability of this vast industry knowledge and expertise, combined with the presence of branches of some of the world’s best-known universities and dedi-cated government organisations in the Gulf region, provides a unique opportunity for collaboration and innovation between all relevant stakeholders – academia, industry and government. This is of particular im-portance at a time when the region needs to find a common approach to pressing issues such as managing its precious water and energy resources, and boosting supply and demand efficiencies.

With this in mind, creating local and re-gional environments that allow serendipity to strive in order to bolster innovation and R&D will be even more critical. If applied successfully, it may give an important im-petus to the region’s energy sector and turn it into an innovator in its own right, pro-viding truly innovative energy and water solutions not only to the region but to the world beyond.

Hopefully, the relevant stakeholders will works towards providing the type of envi-ronments and infrastructure that will con-tribute to creating serendipitous moments for scientists and researchers in the region in the future

ABOUT GULF INTELLIGENCE

Gulf Intelligence facilitates knowledge exchange and

networking between stakeholders in the Energy, Healthcare and

Banking & Finance sectors across the Gulf region. The

strategic communications firm, headquartered in Dubai and

operating in Qatar and Oman, prepares and positions clients as Thought Leaders in their industry

utilizing a range of dynamic platforms that ensure a direct

and tangible engagement with stakeholders.

www.thegulfintelligence.com

BY SEAN EVERS Managing PartnerGulf Intelligence

“There are different ways of bringing about the 'Aha!' kind of moments that potentially lead to breakthroughs. Applying the so-called proximity principle, which promotes physical proximity as a driver behind creative and innovative thinking, is one of them.”

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MSCI began consultations as long ago as July 2008 after which local investors watched the index provider’s annu-al June updates with bated breath. In June 2013, MSCI

finally announced that Qatar and the UAE were to be upgraded at the May 2014 reclassification.

Following the announcement last year, active investors began positioning them-selves and helped Dubai’s benchmark index rally 108% during the year, making it the second best-performing equity market in the world (after Venezuela). Abu Dhabi and Qatar were also among the top ten perform-ers. In the first five months of 2014, Dubai continued its remarkable ascent, climbing 51% to claim top spot among global equity markets. Qatar was in second place, rallying 32%.

After tremendous excitement, extensive press coverage and billions of dollars of foreign inflows, the long-awaited upgrades are now behind us. But what happens next? How will MSCI’s decision affect these markets and the region?

Impact visibleSome impacts from the upgrade are al-ready visible while others will take years to emerge. Quick wins included the virtuous cycle fuelled by a jump in daily liquidity which squeezed bid-offer spreads, in turn attracting greater volumes and helping the cycle to continue.

In the first five months of 2013, average daily volumes were QR254.8 million ($70

million) on the Qatar Stock Exchange and QR655.2 million ($180 million) across both UAE exchanges. In the first five months of 2014, this had tripled to QR848.12 mil-lion ($233 million) in Qatar and quadru-pled to over QR2.78 billion ($765 million) in the UAE.

Heightened international awareness of both countries is another positive, as in-creased press coverage will educate readers about inward investment opportunities. The narrative on Dubai will no longer just be a popular destination for tourists and real estate investors; Abu Dhabi’s domestic spending plans will enjoy greater exter-nal attention; while Qatar will see articles about more than just its own investments abroad. Unfortunately for Qatar, the MSCI upgrade has coincided with negative press about the FIFA 2022 World Cup which has certainly reduced some of the active buying expected around the MSCI upgrade.

Local equity markets expandOver time, increased capital inflows will expand local equity markets. Sustained high oil prices have meant regional banks are flush with cash and are looking to ag-gressively deploy their balance sheets. In addition, both corporate and sovereign borrowers took advantage of buoyant fixed income markets in 2012 and 2013, securing long-term funding. In this environment, equity raising has been very limited so add-ing another option to finance ambitious government plans and associated private sector expansion will be welcome.

There will also be a recalibration of

business > viewpoint

“After years of anticipation, the UAE and Qatar have finally been reclassified from Frontier to Emerging Markets by MSCI. While local exchanges and regulators have done the heavy lifting so far, the onus will now be on listed companies to prove themselves to a more international audience.”

SAUDI

HOLDS THE KEYMorgan Stanley Capital International’s (MSCI) reclassification of UAE and Qatar from frontier to emerging markets was akin to these two countries winning a prize on the global stage.

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QATAR TODAY > OCTOBER 2014 > 37

shareholders who – although will remain minorities because of foreign ownership limits – will gradually bring in change, both negative and positive. Many inter-national funds have long invested in the GCC and higher correlation to global mar-kets is evident in many of the stocks they favour. Foreign ownership will rise fur-ther but this may not always be desirable; UAE and Qatari equities will increasingly feel pain during times of sour global sen-timent when top-down ‘de-risking’ drives indiscriminate selling.

However, some of these new investors have considerably longer horizons ver-sus local retail that dominates GCC equity markets. UAE and Qatari companies will be increasingly conscious of demands to improve transparency and come up the in-vestor communication curve if they wish to benefit from the significant foreign cap-ital available. Improvements to corporate governance will be positive but likely take several years to be felt.

The importance of Saudi ArabiaWhile attention has been on UAE and Qa-tar, the real prize in the GCC would be to add the Kingdom of Saudi Arabia (KSA) to the fold.

In early 2013, HE Mohammad Al-Sheikh was named Chairman of the Cap-ital Markets Authority (CMA). His West-ern experience is notable as he studied at Havard Law School, worked at a major US law firm and held a senior position at the World Bank.

A few months after his appointment, the work-week was adjusted to the regionally conventional Sunday-Thursday, increas-ing overlap with international markets. In addition, the CMA held consultations with foreign brokers to discuss a framework allowing certain foreign investors access. Frenzied speculation of imminent change followed but unfortunately so did silence from the CMA. Anticipation of opening up the Kingdom’s listed companies to direct foreign ownership has since waned, how-ever, this is unlikely to be the end of the road. Regulatory change in Saudi Arabia is never rushed.

For Saudi to be eligible for a global equi-ty index other changes are necessary, such as the T+0 settlement process. Although extremely popular with retail inves-tors, which account for 90% of daily vol-umes, international investors may be less enthusiastic.

However, the country’s size and poten-tial are compelling. The QR2.73 trillion ($750 billion) economy should continue to grow in the mid-single digits and accounts for almost half of the GCC’s GDP. KSA’s 28 million people represent more than 60% of the region and Saudis make up 75% of their country’s population; in stark con-trast to Qatar and the UAE where just one person in every nine are citizens.

While Qatar boasts the greatest propor-tion of millionaire households in the world (at 14%) and Abu Dhabi’s QR364,000+ ($100,000+) GDP per capita makes it one of the highest globally, Saudi’s more mod-est GDP per capita of QR94,640 ($26,000) reflects a demographic closer to an average emerging economy.

Although the Kingdom has its fair share of ultra-wealthy, it also has a large pro-portion of middle class and lower income workers as well as the unemployed. This brings to bear familiar themes for global investors, such as urbanisation and indus-trialisation which are limited in the region.The Saudi stock market offers superior breadth and depth versus regional peers. One hundred and sixty four listed compa-nies (versus UAE’s 92 and 43 in Qatar) with an average daily volume in excess of QR8 billion ($2.2 billion) are more than double the UAE and Qatar combined. The Saudi Tadawul index boasts 50 stocks which trade more than QR36.4 million ($10 million) a day.

Saudi Arabia also offers superior di-versification and is not just dominated by banks and real estate companies, allowing more nuanced investment. There are nu-merous listed petrochemical producers which benefit from some of the cheapest feedstock in the world, as well as dozens of consumer and industrial companies which are key beneficiaries of enhanced govern-ment spending. In terms of significance, the QR1.638 trillion ($450 billion market) capitalisation of MSCI Saudi Arabia com-pares to MSCI South Africa’s QR1.53 tril-lion ($420 billion) (˜7.5% weight in MSCI EM) and QR1.31 trillion ($360 billion) for MSCI Mexico (˜5% weight). Implementing foreign ownership limits would lower Sau-di’s index weight, but with Qatar and the UAE already included, the Gulf’s overall contribution would be significant.

So while the UAE and Qatari equity mar-kets bask in their upgrade to MSCI EM, the true coming of age for the region will be if, or perhaps when, Saudi joins them

BY AKBER KHANDirector of Asset ManagementAl Rayan Investment

AVERAGE DAILY VOLUMES AT THE QATAR STOCK EXCHANGE IN 2013

QR254.8 MILLION

AND

QR655.2 MILLION

ACROSS BOTH UAE EXCHANGES.

THE FIRST FIVE MONTHS OF 2014IN QATAR

QR848.12 MILLION

IN THE UAE

QR2.78 BILLION

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38 > QATAR TODAY > OCTOBER 2014

development > viewpoint

TALKS: THE ONLY WAY OUT

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QATAR TODAY > OCTOBER 2014 > 39

Combining few absolute and com-parative advantages with vision-ary foresight, integrating with one another and recognising current economic and geopolit-ical realignments, the role and

strength of moderate, prosperous and out-ward-looking sheikhdoms like Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE in the global political economy should not be underestimated.

Vested interests in securing a steady, un-interrupted supply of oil and natural gas at affordable prices, coupled with expansion of trade and the GCC having adopted some concepts from the European integration process, led to closer cooperation between the two blocs, though negotiations for an FTA, a balanced and capable means to im-prove and liberalise bilateral trade, failed yet to materialise to benefit the two blocs.

Creating better economic conditions, enhancing competition and facilitating the movement of goods, services and invest-ments, the envisaged EU-GCC trade deal is

expected to deliver viable commercial opportunities. But what about the actual balance of benefits?

Realistic concessionsWith customs duties at an average of about 4%-5% for the EU and the GCC, respective-ly, and the highly trade-dependent GCC states only having few goods to be exported in significant quantities, import tariffs need to be slashed to zero levels and non-tariff barriers to trade will have to be reduced or eliminated. Otherwise GCC products such as fuels, hydrocarbons and goods with, so far, low and medium-range technology will not benefit much from enhanced market access to the EU.

Export of value-added, high-tech inten-sive goods, like heavy machinery, aircraft, medical equipment etc, is already signif-icant for the EU, and is expected to rise across various sectors, provided the GCC states scrap rules on foreign ownership out-side the designated free zones and let their energy, services, labour and investment

markets become fully unrestricted.Thus, for the long-awaited EU-GCC

trade deal to be successful, concessions need to be realistic commensurate to un-derlying interests, opportunities and lim-itations to both sides, and take into account that non-tariff barriers to trade appear to be more trade restrictive than import tariffs.

Classical import tariff issues and a series of technical, market access-related factors such as dual pricing, rules on origin, pub-lic procurement etc, have been subject to a negotiation process eventually suspend-ed by the GCC for reasons of scant results, and the EU constantly bringing up new demands is interpreted as interference in domestic sovereignty/indirect criticism of GCC regimes.

In an attempt to throw momentum be-hind the stalled trade talks, the EU decided to lift preferential market access assigned to GCC states for reasons of promoting the sustainable development of their infant economies.

With the EU import tariff for GCC avia-tion fuel set at zero level instead of the late 2013 have now announced 4.7%, the two blocs to find common ground for a decisive decision on export duties, reportedly the last remaining issue for a deal to pass.

Miles to go In line with its trade policy towards its trad-ing partners, the EU is against imposition of export duties, making the contentious, unresolved issue a question of how far the envisaged trade deal with the GCC will be able to restrict the freedom to use trade measures in the future.

The EU seems to have softened its ini-tial position, allowing export duties to be used up to a certain proportion of products. Some GCC states appear to be inflexible though, keen on the right to maintain the possibility to levy export duties to guaran-tee their expanding and future downstream industries whose resources are possibly prone to price fluctuations on the export market, or scarcity on the home market.

Although engagement for an EU-GCC trade deal took place at a time when do-mestic market liberalisation and regional integration of the Gulf was in the early stag-es, economic performance and financial strength have gone up considerably, mak-ing the latter more assertive and assigning them status and influence.

Airlines in the EU face increased compe-tition and financial problems, offering op-portunities for the cash-rich Gulf carriers to expand their reach in the EU. Subject to

AFTER A SIX-YEAR STALEMATE OVER THE SUSPENDED NEGOTIATIONS FOR AN EU-GCC FREE TRADE AGREEMENT (FTA) AND A RECENT MEETING BETWEEN THE TWO BLOCS CANCELLED, THE EUROPEAN UNION (EU) AND THE GULF COOPERATION COUNCIL (GCC) SHOULD BEGIN FOCUSING ON A MEANINGFUL DIALOGUE FOR A DECISIVE RE-ENGAGEMENT TO CLEAR SNAGS AND MISUNDERSTANDINGS BESIDES ISOLATING CONTROVERSIAL ISSUES.

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40 > QATAR TODAY > OCTOBER 2014

development > viewpointclearance by EU competition authorities lat-er this year, Abu Dhabi-based Etihad Airways has announced a 49% stake with a QR5.61 bil-lion ($1.54 billion) investment over the next three years in Italy’s loss-making Alitalia. With Qatar Word Cup 2022 and Dubai World Expo 2020, it is expected that burgeoning Gulf carriers with aggressive growth and in-tensive brand marketing strategies will con-tinue to seek and consolidate landing rights in the EU.

With Arab Gulf money becoming more visible in the EU, both blocs should prevent discussions over either state aids or possible underlying political motivations of Sovereign Wealth Funds bogging down in a sentiment of anxiety and unjustified accusations.

Pressure will not workWith the GCC cancelling the 24th GCC-EU ministerial this summer for reasons of all EU member states supporting a critical United Nations Human Rights Council (UNHRC) statement on the human rights situation in Bahrain, the EU should realise that putting pressure on absolute monarchies over po-litical issues/human rights might be count-er-productive, risking deterioration in the EU-GCC cooperation relationship that has existed since 1980s.

Thus, the EU neither has leverage over the GCC as a bloc nor over GCC states individual-ly, for the Arab Gulf states have come of age, positioning themselves in a rather unique bargaining position compared to other trading partners of the EU.

Despite industries and energy markets switching to clean, renewable energy sourc-es and environment-friendly energy saving technologies, the EU member states still remain on the demand side in a structural-ly tight global oil market, or dependent on external suppliers of oil and natural gas to the extent of the risk of supply chain vulner-ability. Major energy consumers in their own right, acknowledging energy security has be-come crucial to generate economic develop-ment and sustainable economic growth, GCC states prioritise improvements to energy efficiency and embark upon measures to en-sure their depleting hydrocarbon reserves in terms of both availability on the home market and value on the export market.

Food security highDespite the ability to use modern technology in a dry desert climate, the food import-de-pendent GCC states realise what the large-scale growing of agricultural crops to secure their fast-growing populations, food security will cost them.

With GCC investors strategically buying arable land or acquiring stakes in agri-busi-nesses on international markets, the EU should position its own agricultural strength as a window of opportunity.

Still in the process of building viable econ-omies capable of resisting the downside of economic development, GCC states know that they cannot diversify their oilmoney-fi-nanced economies without importing more in order to export more, yet the for – trade liberalisation/regional integration – required political drive has slowed among the six GCC states who appear to be more divided than ever before over a variety of other, more imminent issues.

Embarking on genuine free trade means moving away from subsidisation, largesse and patronage of the economy, factors the EU should realise that, in a post-Arab Spring cli-mate, the hereditary-ruled GCC states have reasons to act carefully given their tradition-al role as providers of generous welfare and jobs.

Allowing GCC states the right to impose export duties is no preferred option, for such a move will, like the human rights/political dialogue, set a precedent for other trading partners of the EU.

Give-and-take policyNaïve optimism coupled with excessive spec-ulation, like the EU announcing an increased customs duty for GCC aviation fuel in an at-tempt to bear pressure upon GCC states in the hope they will reconsider and re-engage that in bilateral trade talks, is best avoided.

Opting for interest-representation, or re-lying on like-minded stakeholders in the EU in the hope that they will persuade politicians and that policy-makers in Brussels, the seat of EU institutions to alter or not to implement a certain measure, might be helpful though not necessarily successful.

The forces of economic globalisation, the price of a barrel of oil, the fight against terror-ism and the return of Jihadist militants from Syria and Iraq have brought an ever more in-secure world closer, delivering to both sides common concerns and mutual interests.

When countries are willing to prepare the ground properly and consider compromises, they can clinch a deal. Italy, the current hold-er of the rotating presidency of the EU, an-nounced early this year that it will help carve out the long-awaited FTA. It remains to be seen whether this will lead to the necessary one step back for the long-sought two steps forward for accomplishing a sound, com-prehensible and World Trade Organisation- compatible EU-GCC trade deal

BY JOHANN WEICK Analyses and teaches GCC-EU relations in BrusselsBelgium and Dubai, UAE

"THE EU NEITHER HAS LEVERAGE OVER THE GCC AS A BLOC NOR OVER GCC STATES INDIVIDUALLY, FOR THE ARAB GULF STATES HAVE COME OF AGE, POSITIONING THEMSELVES IN A RATHER UNIQUE BARGAINING POSITION COMPARED TO OTHER TRADING PARTNERS OF THE EU."

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GCC FAMILY BUSINESSES:INCREASED COMPETITION

IN LOCAL MARKETS

COVER STORY

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COVER STORY

BY V L SRINIVASAN

GCC FAMILY BUSINESSES:

INCREASED COMPETITION

IN LOCAL MARKETSAPPROXIMATELY 80% OF NON-OIL GDP IN THE

MIDDLE EAST IS ACCOUNTED FOR BY FAMILY-OWNED BUSINESS (FOBs), WHICH ALSO GENERATES MORE THAN 70% OF EMPLOYMENT IN THE REGION. QATAR

TODAY LOOKS AT THE ROLE BEING PLAYED BY THESE FAMILY-OWNED BUSINESSES IN SHAPING THE ECONOMY OF THE COUNTRIES IN THE REGION.

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GCC FAMILY BUSINESSES:INCREASED COMPETITION

IN LOCAL MARKETS

COVER STORY

Privately-owned organ-isations span multi-ple businesses and are typically vertically in-tegrated, own sizeable real estate portfolios, and their operational control is still main-tained by the original founding family mem-

ber or, in some cases, by the second or third generation.

The 19th century-born US poet Ralph Waldo Emerson was emphatic when he said: “It requires a great deal of boldness and a great deal of caution to make a great fortune, and when you have it, it requires ten times as much skill to keep it.”

For many families in business, the rapid pace of change and growth in the market place presents significant concerns regard-ing the manner in which they will continue

to safeguard and preserve their heritage and wealth. The FOBs in the Middle East face a range of challenges that not only im-pact the success of their business, but also the professional and personal goals of their owners and their stakeholders at large.

In Qatar, family-owned and-managed businesses have been making a vital contri-bution to the country’s economy and over 75% of the companies, which are registered with Qatar Chamber, are either family business groups or HNWIs.

Reputed FOBs include Salam Inter-national, Aamal Holdings, Jaidah Group, Ezdan Holdings, Mannai Corporation and Alfardan Group in Qatar, Olayan Group in Saudi Arabia, Kanoo Group in Bahrain, Al Ghanem in Kuwait and others in the GCC region. All of these business groups have started on a modest note and they have not only built empires but also contributed sig-nificantly to the economic growth of their respective countries over the years. They are involved in businesses right across the economy, including retail, real estate, au-tomotive, finance, manufacturing, import- export, construction and so on.

Aamal Company Vice Chairman Sheikh Mohammed bin Faisal Al Thani says the FOBs in the GCC have a strong tradition of entrepreneurship that goes back many gen-erations. Much of the Gulf countries’ suc-cess can be attributed to the contributions made by them.

“I believe FOBs could do this because their experience, market knowledge, flexi-bility and entrepreneurial nature enabled them quickly to capture the opportunities created by the economic prosperity this region has been witnessing,” he feels.

Even a report by global management consultancy firm A T Kearney says the biggest advantage of GCC family business has been the ability to capture the re-gion’s significant growth via international partnerships and franchises across multi-ple sectors. These are reinforced by local regulations and exceptional leaders with strong entrepreneurial spirit and intimate knowledge of local markets, it says.

The report entitled “GCC Family Busi-nesses: Unlocking Potential through Ac-tive Portfolio Management” also says that after a tough 2008, GCC family business-

“FAMILIES FEAR LOSING CONTROL IF PUBLIC SHAREHOLDERS BECOME INVOLVED AND FAMILIES ARE NOT ACCUSTOMED TO THE DEGREE OF PUBLIC SCRUTINY AND ACCOUNTABILITY WHICH IS REQUIRED OF LISTED COMPANIES. THEY OFTEN ALSO FEEL THAT THEIR BUSINESS IS DOING WELL AND THERE IS NO NEED FOR A STOCK EXCHANGE LISTING.”

SHEIKH MOHAMMED BIN FAISAL AL THANIVICE CHAIRMANAAMAL COMPANY

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45QATAR TODAY

OCTOBER 2014

“THE BIGGEST CHALLENGE TO FAMILY BUSINESSES

IN THE MIDDLE EAST IS THE THORNY ISSUE

OF MANAGEMENT INTERFERENCE. ALL MIDDLE

EAST RESPONDENTS FELT THAT HNWIS WOULD GET

HEAVILY INVOLVED IN MANAGEMENT DECISIONS.”

HARISH GOPINATHHEAD OF FAMILY BUSINESSES IN THE

MIDDLE EAST AND ASIAKPMG

es rebounded to some extent (as did the market), but this did not last. As the over-all market has trended mostly up, family businesses have trended downward.

Sustainability is crucial, after all, as many of the FOBs are facing increased competi-tion in local markets, pressure to continue to globalise their businesses, and challeng-es associated with generational transition of leadership and business management, the report adds.

Reasons for successOne of the main reasons why the FOBs have succeeded in the region is the involvement of the family members, who are willing to go to any length to achieve their goal. Be-sides, loyalty from the staff is another factor that has contributed to their success.

Abu Issa Holding (AIH) Chairman Ashraf Abu Issa, who took over the business when he was 19 following his father’s death, says: “It was by no means an easy task as there were 36 employees at that time. However, my father was a role model for me as he nur-tured the relationship with the employees based on mutual trust and respect and this continues even today. Ours being a family business, I always treat them as my family members and not as employees.”

Abu Issa says compared with private limited companies, family businesses are more concerned about their reputation. “Any wrong move will not only result in the

collapse of business but also bring a bad name to the entire family. Hence the expec-tations are high and so is the outcome,” he says.

However, he has a word of caution. Though there are more than 1,000 FOBs in Qatar, not more than 5% of them have a formal governance structure, which is vital for the health of any business to attract best talent, ensure greater transparency and access to capital.

“I feel that by having a streamlined man-agement practice, family businesses can withstand changes such as generational transitions and thrive for several years. Since every family business is distinctive, the rules and procedures will be flexible to face their own challenges and become suc-cessful ventures. If there is no family busi-ness governance model, even good compa-nies are prone to go the wrong way,” Abu Issa warns.

“Intrinsic qualities such as their long-term view on profitability (investing prof-its versus paying out dividends), their family fabric, value systems, history and tradition play a role in their success,” says Walid S Chiniara, Head of Private Company Services at Deloitte Middle East.

“Further, external factors such as favour-able regional economic circumstances and the encouragement of foreign direct invest-ment have supported the growth of family businesses,” Chiniara says.

2008 2009 2010 2011 2012

100100%

80%

60%

40%

20%

Family businesses in the GCC have struggled since 2008

Note:100 basis is January 1, 2008Sources:A.T. Kearney analysis

A.T. Kearney GCC Family Conglomerate IndexBloomberg GCC 200 Index

1 Credit Suisse Research Institute, September 20122 The GCC includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.3 Top 80 listed GCC family-owned conglomerates and top 200 listed GCC companies, respectively

-40%7I

6I 60

40

-60%

EXPERT SPEAK

Page 46: 10 Qatar Today October 2014

32% 76%

48%

55%

24%

40%

9%

Sector where family businesses in the GCC are active

of family businesses in the GCC have one or more female family board members, compared with 1.5% for the region's listed companies

Family businesses in the GCC pay some of the lowest tax rates in the world. According to the World Bank's 2012 Doing Business report, the six GCC countries are among the world's 11

lowest tax jurisdictions. GCC businesses, therefore, tend to have more cash in the coffers than some of their western counterparts.Regulation also helps family-owned firms. Most of the GCC countries have laws saying that an international company wanting to operate in a GCC country has to work with a local partner. This means paying a sponsorship fee to a local firm and giving it the majority stake in the business, while the foreign firm takes charge of the day-to-day management of the company. The main aim is to develop the local economy by creating economic opportunities and jobs for local nationals, but the system also encourages transfer of knowledge from foreign companies to local firms.GCC countries have created a number of free zones, such as the Jebel Ali Free Zone in Dubai. As well as allowing foreigners to maintain full ownership of their companies, these free zones make it easier for locals to do business by cutting red tape (for example, it's easier to process a work permit application).

of family businesses in the GCC do not disclose financial information publicly

of family businesses in the GCC are involved in five or more sectors...

of family businesses in the GCC intend to seek external capital in the future

of family businesses in the GCC have raised external capital

are involved in three or four sectors...

...and the remaining

I2%are involved in two sectors or fewer

of family firms in the GCC have a corporate govenance committee

Gov

ernm

ent p

olic

y

40%

37%

36%

25%

I8%

I8%

I6%

I3%

I0%

Construction

Retail

Manufacturing

Hospitality

Telecoms

Banking and finance

Utilities

Oil & gas

Other

TO FIND OUT MORE ABOUT HOW CIVIL AND SHARIA LAW AFFECT FAMILY BUSINESSES, GO TOwww.campdenfb.com

GCC FAMILY BUSINESSINCREASED COMPETITION

IN LOCAL MARKETS

COVER STORY

Page 47: 10 Qatar Today October 2014

2%OTHER

25%OTHER

40%OTHER

1 2 - 5 6 - 10 11 - 20 >20

QR46.96 QR31.30 QR29.48 QR26.2 QR25.12

98%OF GCC COMPANIES ARE FAMILY-CONTROLLED

48%

33%

I5%

4%

1st generation

2nd generation

3rd generation

4th generation

FAMILY BUSINESSES ACCOUNT FOR

75%OF THE GCC'S PRIVATE-SECTOR ECONOMY

60%OF FAMILY BUSINESSES IN THE GCC HAVE BEEN ESTABLISHED SINCE THE 1970s

Top 5 richest families in the GCC

Number of countries where GCC family businesses operate:

Percentage of family business in their:N

ET W

OR

TH IN

BIL

LIO

NS

FAMILY

CREDIT: Survey conducted by

CampdenFB in 2012 with the help of Family Business

Network GCC, PwC, the Pearl Initiative, and Booz&Co.

OLAYAN KHARAFI BINLADIN BUKHAMSEEN BUGSHAN

COUNTRY SAUDI ARABIA KUWAIT SAUDI ARABIA

SAUDI ARABIA

KUWAIT

QATAR

UAE

BAHRAIN

OMAN

KUWAIT SAUDI ARABIA

28%

34%

I7%

9% 9%

47QATAR TODAY

OCTOBER 2014

Page 48: 10 Qatar Today October 2014

GCC FAMILY BUSINESSES:INCREASED COMPETITION

IN LOCAL MARKETS

COVER STORY

According to Chiniara, the three major reasons why FOBs have succeeded in the past were a pool of educated next genera-tion who were ready and able to take over the reins of control and become the next enablers; modern and sophisticated legal systems that support and offer the foun-dations to family businesses to team up with successful international brands; and a sense of privacy and confidentiality where family conflicts are kept private, limiting the negative influence they can have on the business or even the family’s reputation.

Improved governanceAn important trend that is being wit-nessed in the region is the deliberate, sys-temic improvement in governance, says Andrew Porter, Director of Research at London-based Campden Wealth, which provides intelligence and networking op-portunities for reputed business-owning and financial families and their family offices around the world.

“Good corporate governance – related integrally to transparency, accountability and professionalisation – is helping these business families secure their legacies. The entrepreneurial, founding generation took many risks and weathered economic turbu-lence in order to build successful business-es; in many cases, we are seeing the next generation of business leaders take steps – notably through education, training, and professional experience and improved gov-ernance structures – to inculcate global best business practices,” Porter says.

Standard Chartered Bank’s Regional Head (Private Banking Clients for EMEA and South Asia) Stephen Richards-Evans attributes the success to a number of rea-sons like heavy family involvement in the day-to-day management of the business, strong personal and family ties, and the ability to make difficult investment deci-sions that will benefit the company in the long run, unlike companies that are run primarily to deliver fast returns for share-holders and focus on not over-stretching the business. “Family businesses also adopt a conservative approach when dealing with business finance, only seeking credit where it is affordable and where there is a genuine need,” he points out.

Clear rulesFamily-owned businesses in Qatar and the region, which represent the majority of the private sector, are well established in a vast range of industries such as retail, real es-tate, trading, and services. Family business-es have developed the necessary knowledge and captured the right opportunities to achieve high growth.

Sheikh Mohammed says many of them have evolved to become multi-billion dol-lar companies and earned an international reputation. Successful family businesses which also implement best practice poli-cies and regulations, high standards of cor-porate governance and transparency have won public confidence and proved them-selves over the years, expanding their op-erations and attracting foreign investments to Qatar, he points out.

“As far as Qatar is concerned, the ad-vantages of FOBs are that the rules and regulations are very clear and there are

“SINCE EVERY FAMILY BUSINESS IS DISTINCTIVE, THE RULES AND PROCEDURES WILL BE FLEXIBLE TO FACE THEIR OWN CHALLENGES AND BECOME SUCCESSFUL VENTURES. IF THERE IS NO FAMILY BUSINESS GOVERNANCE MODEL, EVEN GOOD COMPANIES ARE PRONE TO GO THE WRONG WAY.”

ASHRAF ABU ISSA CHAIRMANABU ISSA HOLDING

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49QATAR TODAY

OCTOBER 2014

no grey areas in this regard. The absence of a tax regime is another reason why they have scripted many success stories in the past and also in the present generation. Moreover, they will be leaders in their com-munities and spearheading innovations,” says Abu Issa.

The flip sideThe other side of the story is equally inter-esting. While the first-generation FOBs, led by the founder(s), had a string of vic-tories in the West, succession wars, failure in overcoming hurdles during transition of power, and familial feuds have resulted in the downfall of many of them after the third or fourth generations, in many countries. In other words, the first generation makes money while the second generation tries to keep it and the third and fourth generations lose it, as is the case in the West.

Chiniara, however, says it is entirely dif-ferent when it comes to the Middle East, as most of the family businesses in the Mid-dle East are still owned and controlled by the founding members. “One can often see three or four generations cohabitating un-der the same roof whereby they have not yet experienced the transition from generation one to generation two, three, or four,” he says.

What is about to happen over the next decade, he says, is a transition from first generation to third or fourth generation, depending on the circumstances. But he is

confident that the new leaders are quali-fied to take over from their seniors and that they will beat this statistic. "I believe that each generation of leaders should behave as if it is generation one. They have the re-sponsibility to keep the dream alive and the entrepreneurial spirit thriving,” he says.

However, Abu Issa feels that the majority of FOBs do not survive due to loss of fam-ily values and motivation over the years and also due to the dominance of the older generation.

The FOBs also lack a proper succession plan to endure their businesses, which is again part of good corporate governance. The autocratic approach never helps and the next generation should gain experience from the founders/successors while they are still at the controls, Abu Issa points out.

The success percentage of transition is 30% to the second generation while the cor-responding figures for the third and fourth generations are 10% and less than 3%, re-spectively, says Porter. “Family businesses fail not because of operational blunders, misplaced patents, or mismanagement but due to familial feuds,” Porter adds.

Establishing a governance framework to regulate the family’s roles as shareholders, board members, and managers is essential because it can help avoid these pitfalls.

Richards-Evans says the main issues af-fecting FOBs survival across generations is lack of proper planning for personal wealth transfer, family conflicts, nepotism and

Most GCC family businesses have fragmented portfolios

Number of sectors in the portfolio%

Business sectors in the portfolio(% active in sector)

I7% I7%

38%

28%

I6%24%28%

36%44%

56%56%64%

72%

1 to 2

66% of family businesses participate in five or more sectors

Note: Based on a sample of 40 major family businesses in the GCC; includes investmentsSources: Zawya, Bloomberg, public company information; A.T. Kearney analysis

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“THE MAIN ISSUES AFFECTING FOBs’ SURVIVAL

ACROSS GENERATIONS ARE LACK OF PROPER

PLANNING FOR PERSONAL WEALTH TRANSFER,

FAMILY CONFLICTS OVER MONEY, NEPOTISM AND KEEPING THE BUSINESS

PERSONAL RATHER THAN INSTITUTIONALISING IT.

THIS EVENTUALLY RESULTS IN POOR MANAGEMENT

AND DISPUTES OVER THE SUCCESSION OF THE

BUSINESS LEADERSHIP AND MANAGEMENT.”

STEPHEN RICHARDS-EVANSREGIONAL HEAD, PRIVATE BANKING CLIENTS FOR EMEA

AND SOUTH ASIASTANDARD CHARTERED BANK

EXPERT SPEAK

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GCC FAMILY BUSINESSES:INCREASED COMPETITION

IN LOCAL MARKETS

COVER STORY

keeping the business personal rather than institutionalising it. This eventually results in poor management and disputes over the succession of the business leadership and management.

Sheikh Mohammed feels that it would be impossible to pin point one specific rea-son why FOBs do not survive. Family busi-nesses cannot succeed for any number of reasons and indeed the reasons for failure are the often same as for any business: they are badly managed, fail to control costs or simply suffer from an economic downturn.

“There are, however, certain factors that are prevalent in family businesses that can contribute to their demise. Specific factors can include informality of fundamental business practices, a lack of robust process-es and controls, or lack of firm leadership with different family members pursuing their own agendas. What is clear is that without strong corporate governance a business is unlikely to succeed in the longer term,” Sheikh Mohammed says.

Many challenges Like successes and failures, FOBs in the re-gion have many challenges to sustain and grow and they include concentration of assets in the hands of seniors, centralised decision-making process frustrating those not involved in it, lack of transparency and communication between beneficial own-ers and interested parties, and retention of talent among others.

“One of the major challenge is a rising generation of educated, capable next gen-eration entrepreneurs, particularly female members of the family who are looking to secure their share of the ownership in the business, and who are beginning to challenge the status quo,” Chiniara says.

The other issues are difficulty in letting go and passing the baton to the next gener-ation, an opportunistic (emotional) growth strategy that leads in many cases to the misalignment of the vision between seniors and juniors, and also growing international competition, Chiniara says.

Richards-Evans says there is increased competition in the market and the chal-lenges associated with transition of busi-ness leadership to the next generation. “A key challenge to the successful transfer of business across generations stems from the lack of talent inventory and/or lack of read-iness among the next generation to lead the business,” he says.

According to Porter, recruitment and

retention of qualified staff are a perenni-al challenge for GCC/Qatar-based family businesses, though they are not alone in facing this issue.

As many family businesses prepare for the inter-generational leadership transi-tion, it marks an opportunity to establish and develop relationships with exter-nal (non-family) business leaders, thus expanding and professionalising their networks.

“With the GCC governments according priority to education and human capital in-vestments, one can expect the FOBs further professionalising through the recruitment and retention of senior staff, managers and executives in the coming years,” Porter says.

“There should be more awareness among family businesses about the threat of globalisation and how it can negatively affect their business if they don’t prepare for it,” Abu Issa adds.

Listing in boursesDespite their successes, the majority of FOBs in the region are not keen to get list-ed on the stock exchanges in their respec-tive countries for fear of losing control over the business if public shareholders become involved, as families are not accus-tomed to the degree of public scrutiny and accountability which is required of listed companies, complying with regulatory conditions, transparency in accounts and accountability to the shareholders.

The other reason is that the region’s economies are not yet market-based and they depend mainly on entrepreneurship and private capital. Institutionalisation is a process and it usually takes between three and five years for a company to become IPO-ready.

Sharing similar views, Sheikh Moham-med says FOBs often feel that their busi-ness is doing well and there is no need for a stock exchange listing. “But I believe that more effort should be made to highlight the benefits of a public listing and encourage them to take this step,” he says.

However, things have been changing over the past decade in the GCC judging from the success of companies like Mannai Corpora-tion, Salam International, Ezdaan group etc in Qatar, just to name a few success stories.

With the GCC governments initiating economic reforms, FOBs are consider-ing expanding their operations by going public and raising additional resources both

“THE THREE MAJOR REASONS WHY FAMILY BUSINESSES HAVE SUCCEEDED IN THE PAST WERE A POOL OF EDUCATED NEXT GENERATION WHO ARE READY AND ABLE TO TAKE OVER THE REINS OF CONTROL AND BECOME THE NEXT ENABLERS; MODERN AND SOPHISTICATED LEGAL SYSTEMS THAT SUPPORT AND OFFER THE FOUNDATIONS TO FAMILY BUSINESSES TO TEAM UP WITH SUCCESSFUL INTERNATIONAL BRANDS; AND A SENSE OF PRIVACY AND CONFIDENTIALITY WHERE FAMILY CONFLICTS ARE KEPT PRIVATE.”

WALID CHINIARAHEAD OF PRIVATE COMPANY SERVICESDELOITTE MIDDLE EAST

EXPERT SPEAK

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51QATAR TODAY

OCTOBER 2014

“GOOD CORPORATE GOVERNANCE –

RELATED INTEGRALLY TO TRANSPARENCY,

ACCOUNTABILITY AND PROFESSIONALISATION

– IS HELPING THESE BUSINESS FAMILIES

SECURE THEIR LEGACIES. THE ENTREPRENEURIAL,

FOUNDING GENERATION TOOK MANY RISKS AND

WEATHERED ECONOMIC TURBULENCE IN ORDER

TO BUILD SUCCESSFUL BUSINESSES.”

ANDREW PORTER DIRECTOR OF RESEARCH

CAMPDEN WEALTH

within and outside their countries.“It’s like moving from dictatorship to de-

mocracy at the business level. In addition to introducing management and accounting systems, the mindset of the owners and that of the executives working within such busi-nesses needs to evolve whereby collegiality, transparency, empowerment and account-ability become second nature,” Chiniara says.

“The FOBs have become FDI-friendly and are investing heavily in infrastruc-ture, most notably education, healthcare, transportation, logistics, and telecom-munication. We strongly believe that the partnership between the private sector (dominated by families in business) and the government will ensure the sustainability of the economy over generations to come,” Chiniara adds.

External financeAn interesting aspect is that four-fifths of Middle-Eastern businesses are seeking external finance, while three in five have previously offered equity in their business to external investors, according to a recent global survey by KPMG, a global network of professional firms providing Audit, Tax and Advisory services.

The survey says that 58% of family businesses globally are currently seeking external financing to fund their investment

plans, but finding the right strategic invest-ment partner can be challenging. This is not the case in Qatar, where banks are “very willing” to lend to FOBs, the report says and identifies that HNWIs are an untapped resource in the region.

The findings also show that the top pri-orities of HNWIs and FOBs align: HNWIs name long-term capital appreciation (37%) as their top driver for investment, while family-owned businesses name long-term orientation towards investment returns as their top investor characteristic (23%).

“The biggest challenge to family busi-nesses in the Middle East is the thorny issue of management interference. All Middle East respondents felt that HNWIs would get heavily involved in management decisions,” Harish Gopinath, KPMG’s head of Family Businesses in the Middle East and Asia, says.

“Investment between family businesses and HNWIs in the Middle East is not com-mon, mainly due to the perception that HNWIs would want to get closely involved in the management decisions and day-to-day operations of the family business. How-ever, family businesses are seeking external finance and, in addition to financing, con-necting with HNWIs can bring about syn-ergies and tap into the knowledge and ex-perience of HNWIs which will enable them to grow to the next level, “ Gopinath adds

Source:George & Foley, 2014

1st Generation

2nd Generation

3rd Generation

4th Generation

30%of family businesses transition successfully to the second generation.

Only

10%

of family businesses transition successfully to the third generation.

Less than

3% of family businesses transition successfully to the forth generation.

EXPERT SPEAK

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WHAT PAY RISE SHOULD YOU

EXPECT NEXT YEAR?

ABOUT AON HEWITT

Aon Hewitt is a global leader in human resource solutions. For more information, please visit www.aonhewitt.com.

But do you really know what fac-tors human resources (HR) considers for the budget? Is the process shrouded in secrecy as the HR department works their dark magic behind closed doors,

with zero transparency in the process? If this sounds all too familiar, then read on.

The fact is that those of us working in the fast moving Middle Eastern job market can become a little unrealistic about what to ex-pect. With governments in the region some-times putting forward pay adjustments of up to 80% for nationals in the public sector, the standard pay rise offered to expats can seem a little miserly. However, if you offer a 4% rise to a worker in other parts of the world, for example, the European Union, chances are they will snatch your hand off having been frozen out of pay rises in previ-ous years. It is also worth remembering that pay rises are not an entitlement and your company will only provide them if the busi-ness can afford to do so. With this in mind, what budgets are to be expected and what factors are considered?

Aligning to marketFirstly, your salary increase is meant to be aligned to the market. The theory is that good HR functions regularly test this by reaching out to professional firms for benchmark stud-ies, which reflect “the market” (in essence, what other companies will do).

This data is based on pulse surveys which will collect salary increase budgets of all par-ticipating organisations provided by HR. For example, in Qatar, the consulting industry estimates an average pay increase of 5.2%.

Secondly, external economic factors such as the rate of inflation will influence salary increases. In Egypt for example, inflation is around 10% which is reflected in the salary

increases, as these are meant to cope with the increased cost of living. Another influen-tial factor is the overall economy measured by GDP growth. A positive number suggests that the overall economy is doing well. So will everybody in Qatar receive a 5.2% pay rise? Possibly, but more likely the answer is ‘no’, as there are other factors that influence the final distribution of salary increases.

Final wordThe CEO and board members will have the fi-nal word on salary increases. The task for HR is to come up with a reasonable recommen-dation but it’s not untypical that these recom-mendations will be revised due to changes in the organisation. The 2014 budgets projected this time last year were around 5.6% overall, however, the actual increases were only 5%. This year, the projections of 5.2% seem to be a bit more conservative, but more in line with the actual 2014 increases.

However, even if the CEO and the board sign off on the HR recommendations, it is still possible that you’ll receive a lower pay rise. This could be because the pay rise pool was diverted away to more deserving cases who trumped your needs! Typically, those who are new in a role will get paid less than those who have experience; however, as contribution levels increase, salaries should become com-parable over time which is achieved via bigger pay rises – or your company rewards the best performers exceptionally well, which would be taken out of your bonus pool.

Overall, it is important to be prepared for your salary increase discussions by keeping in touch with the latest economic figures and numbers published in the newspaper from credible sources. Stated facts are a much better source of information than anecdot-al references of what your friends at other companies may or may not have gotten

business > bottom line

For many organisations, it’s time to start thinking about

2015 budgets and, for HR, this means recommending

next year’s salary increases, which will hopefully result

in a bumper pay rise!

QATAR'S CONSULTING

INDUSTRY ESTIMATES AN

AVERAGE PAY INCREASE OF

5.2%

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business > bottom line

The ‘Value Gap’ – a black hole – should be the starting point for your search. This gap could well decide whether your development is proac-tive and knowledge-driven, or

rudder-less and reactive.As Brené Brown explains in her

acclaimed bestseller Daring Greatly: “The space between our practiced values

(what we’re actually doing, thinking, and feeling) and our aspirational values (what we want to do, think, and feel) is the value gap, or what I call ‘the disengagement di-vide.’ It’s where we lose our employees, our clients, our students, our teachers ...”

Corporate leadership is slowly but surely moving in a more wholesome di-rection. The shift from the industrial era to the knowledge economy doesn’t only allow but demands humanising our work environments.

Re-wiring your corporate DNAThe knowledge economy has a stronger

emphasis on services - though not the kind that can be delivered by unskilled or bare-ly-skilled labour. These services require in-depth knowledge, resourcefulness, creativ-ity and inspiration, as well as integrity and empathy on the part of the service provider.

How do we ensure that our organisation nurtures a knowledge-based culture and operation? By adopting two keywords in your corporate parlance and behaviour: Trust and Connection. For your employees to be creative, resourceful and empathetic to the customer’s needs, for them to show integrity in every interaction with the cus-tomer, they need to be inspired, empow-ered and engaged. They need to be involved in creating the organisation’s values and enabled to live those values on a daily basis.

In order for this environment to be creat-ed and sustained, employees need to work together rather than against each other.

But that calls for a change in the nature of the leadership. It is now about engaging the employees, uniting them under a common purpose. The misguided practices of the

HOLD YOUR HORSES, BEFORE YOU FILL THE VALUE GAPWhere do the unachieved aspirations and wasted human potential of your corporation disappear to?

CASE STUDY

IT HAS HAPPENED A COUPLE OF TIMES THAT THE CXOS CALL ME IN BECAUSE THEY CAN’T WORK WITH THEIR CEO. THEY ASK ME IF THERE’S ANYTHING I CAN DO, AS THEY ARE STRUGGLING WITH A CEO WHO MAKES ERRATIC DECISIONS THAT MAKE THEM LOSE FACE WITH THEIR EMPLOYEES, THEY FEEL LIKE THE RUG IS BEING PULLED OUT FROM UNDER THEIR FEET, THEIR PROFESSIONAL REPUTATION IS GETTING TARNISHED. THESE EXCELLENT, HIGHLY-PAID LEADERS IN THEIR OWN RIGHT, WHO CAME TO THE ORGANISATION FULL OF ENTHUSIASM AND WITH MANY IDEAS TO IMPROVE BUSINESS AND GROW THE COMPANY, WHO ARE WILLING TO PUT IN HARD WORK AND THEIR BEST EFFORT, FIND THAT THEIR EXPERT FEEDBACK FALLS ON DEAF EARS BECAUSE THEIR CEO IS NOT WILLING TO LISTEN.

THESE CXOS ARE REACHING OUT TO ME AS A LAST RESORT BECAUSE IF THE BEHAVIOUR OF THEIR CEO DOESN’T CHANGE RAPIDLY, THEY’LL THROW IN THE TOWEL.

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QATAR TODAY > OCTOBER 2014 > 55

past of playing employees off against each other, shaming them publicly and hiring and firing on a whim have less place in this economy.

The leader now needs their employees’ knowledge and expertise, and the creative input from everyone.

The leader-collaboratorSo the definition of the leader has shifted from the ‘all knowing, all powerful’ to the one who keeps the vision alive and keeps everyone engaged by creating an inspiring and collaborative atmosphere that is built on trust and connection.

The power distance has to decrease and a feeling of mutual respect – “we’re all in this together, everybody counts” – needs to prevail for this to work.

Marshall Goldsmith, the world’s number one leadership thinker*, says in his book What Got You Here Won’t Get You There:

“Here is the place where you can be the CEO of a thriving company (...) But here is also the place where you can be a success in spite of some gaps in your behaviour or personal makeup.

That’s why you want to go ‘there.’ There can be a better place. There can be a place where you can be a CEO who is viewed as a greater leader because he doesn’t get in the way of his people.”

As the leader, I now need more feedback, more - and deeper - understanding of what motivates and engages my employees, what encourages them to trust me enough to put an idea out there, to convince them they won’t be ridiculed, tricked or taken advan-tage of if they share their observations and ideas with me.

As employee engagement is fast becom-ing the number one priority of the modern leader, for all the reasons described above,

leadership behaviour has become the num-ber one area of focus. With Marshall Gold-smith Stakeholder Centred Coaching, this is exactly what we focus on.

The feedback factor: Whispers from a horse?

So we agree that in order to become bet-ter leaders it would be useful to get some feedback on our behaviour? Yes? So far, so good. But who qualifies to give us that feedback?

One great source, as outlined above, are those who know us best, who interact with us on a daily basis.

Another great source, one that could add a completely different – and compli-mentary – perspective is someone who has no prejudice and who can afford to be com-pletely open and honest in their feedback.

The cynics among you would probably wager it was impossible to find someone like that... but that’s because you’re only thinking of humans. But what if it’s the feedback of a horse? A twist to the horse whisperer? Highly sensitive, horses act like mirrors, making you acutely aware of how you engage and lead.

Job titles mean nothing to horses, and their respect and trust are not au-tomatically given. Leadership is earned through demonstrating authenticity and truthfulness.

That brings us to Equine Assisted Learn-ing, an emerging field in which the horse acts as a non-judgmental partner and re-flects what transpires during the process where the participant and the horse work together. The effect of this two-day pro-gramme goes far beyond learning about leadership; it is experiential and hands-on transformation.

It offers experiential learning, a unique approach to leadership development. Its aim is to provide a natural opportunity to overcome self-awareness and develop self-confidence, leadership skills and emo-tional intelligence comprised of a variety of management, problem solving and team building activities.

Whether you get there through the feedback of your colleagues, of horses, of a mentor or coach – or, better still, you afford yourself all of these beneficial/valuable/fruitful insights – you’ll see that in order to get there you had to let go of some of what got you here. If change is the only con-stant, then continuous evolution is the only mandate for the leader

CASE STUDY

ONE STORY THAT MIGHT BE SURPRISING TO MANY IS THE STORY OF A COUNTRY DIRECTOR OF A MULTINATIONAL ORGANISATION, WHOSE STAKEHOLDERS (I.E. HIS REPORTS) GAVE THE FEEDBACK THAT HE WAS A NICE MAN TO WORK FOR BUT HE REALLY NEEDED TO BE MORE WILLING TO ENGAGE IN CONFLICT AND CONFRONTATION. HE TENDED TO HAVE AN “ANYTHING TO KEEP THE PEACE” KIND OF ATTITUDE AT WORK, WHICH HIS STAKEHOLDERS FOUND FRUSTRATING. BEING CONFLICT-AVERSE HIMSELF, HE WOULDN’T HAVE THOUGHT OF HIS BEHAVIOUR AS A PROBLEM. THAT’S WHY IT IS SO VALUABLE FOR THE LEADER TO GET FEEDBACK FROM THE STAKEHOLDERS; TO ADD THE PERSPECTIVES OF THOSE WHOM HER/HIS BEHAVIOUR IMPACTS THE MOST.

BY CAROLIN ZEITLER

ABOUT THE AUTHOR

Carolin Zeitler is the founder and CEO of Tataowar Coaching & Consulting, the only provider in Doha certified to offer Marshall Goldsmith Stakeholder Centered Coaching - Guaranteed & Measurable Leadership Growth. Tataowar is also bringing the award-winning Equine Leadership Programme to Qatar for the first time. Contact Carolin for more information on these and other Leadership Development offers at [email protected].

* Marshall Goldsmith has recently been recognised as the # 1 leadership thinker in the world and the # 7 business thinker in the world at the bi-annual Thinkers 50 ceremony sponsored by the Harvard Business Review.

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A “RESOURCEFUL”

WASTELike its galloping economy, solid-waste generation in Qatar is also growing

strongly, due to rapid industrialisation, a spurt in income levels and an increasing standard of living coupled with developmental activities. Against

this background, Qatar Today looks at the various options that are available for managing the country’s waste in a prudent manner.

business > tag this

77.2% OF CONSTRUCTION SECTOR WASTE, AND

7.7%OF DOMESTIC WASTE.

SOLID WASTE GENERATED BY QATAR HAS INCREASED BY

50% BETWEEN 2008 AND 2013.THE

8,200 MTs OF WASTE GENERATED IN 2008

HAS GONE UP TO

I2,I63 MTs IN 2013.

THIS INCLUDES

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QATAR TODAY > OCTOBER 2014 > 57

To begin with, the solid waste generated by has increased, by almost 50% between 2008 and 2013. As against 8,200 MTs waste generated in 2008, it went up to 12,163 MTs in

2013. In other words, Qatar’s per capita dai-ly waste generation is put at around 1.6 kg, one of the highest in the world.

Of this waste, 77.2% is from the construc-tion sector while domestic waste accounts for 7.7%. The rest is comprised of hazard-ous, industrial and other effluents.

While recycling is one of the best options, other methods like incineration and land refill are being taken up to keep the prob-lem under control. However, this is viewed by experts as a short-term solution only, as the waste is growing exponentially and other measures are needed to be taken to tackle it on a permanent basis.

Nispana Innovative Platforms Private Limited Managing Director Narendra Ku-mar says that, though landfill is used only to dump what cannot be recycled or reused, this is not an environmentally sustainable long-term solution, given the limited avail-able land for this purpose in the country.

“While discussions are underway to expand the processing capacity of the

DSWMC, another option would be to devel-op a second processing facility in the coun-try. But with all basic infrastructure already in place at the DSWMC, this option would be a more costly solution,” Kumar feels.

Kumar also points out that residents of Qatar have the responsibility of gen-erating less domestic waste and using resources sustainably so as to keep their surroundings litter-free.

Alarming growth When Prime Minister HE Abdullah bin Nasser bin Khalifa Al Thani visited the Do-mestic Solid Waste Management Company (DSWMC) at Mesaieed in April this year, he was briefed about the amount of waste being generated in the country and also the need to expand the capacity of the centre, which is operated by Antwerp-based waste management company Keppel Seghers, to meet the challenge.

The prime minister, who was accompa-nied by Environment Minister HE Ahmed Amer Mohamed Al Humaidi, and others, has asked his Cabinet colleague to prepare a report on how to meet the increasing demand for waste management.

Later, the Keppel Seghers representa-tives also submitted proposals to the gov-

“The government is monitoring waste management and the country is on the right track as far as the goals set by the National Development Strategy (2011-16) to increase waste recycling.”

SHEIKH FALEH NASSER J AL THANIChief Engineer and Undersecretary Assistant in General Service Affairs wing Qatar Statistics Authority

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business > tag this

ernment to increase the plant’s capacity – from 2,300 MTs per day to 5,000 MTs per day. The project cost was put at around QR2 billion. “The domestic waste generation is growing at the rate of 10% per year and the government is conscious about the prob-lem,” says Stefan Kipp, Regional Director for MENA, Keppel Seghers.

The DSWMC was set up in 2011 with an installed capacity of 2,300 MT per day but the domestic waste generated is more than 2,700 MT per day at present.

The centre has waste separation and re-cycling facilities, an engineered landfill, a composting plant that can generate 800 tonnes of green waste per day, and a 1,500 tonnes-per-day Waste-to-Energy (WTE) incineration plant that can generate about 48.4 MW of power. Of this, 15.4 MW is con-sumed by the Centre and the remaining power is supplied to Kahramaa.

Construction wasteEnvironment Statistics Expert at Qatar Statistics Authority (QSA) Michael Nagy

feels that there should be no reason to wor-ry as this is a natural development, con-sidering the amount of construction that is taking place in the country in view of various infrastructure projects.

“What the government should look at are ways to dispose of this solid waste,” he says, adding that construction waste poses no threat to the environment.

According to Nagy, the mid-term review of the National Development Strategy in 2013 has identified new challenges and priorities to achieve the targets.

“While data on waste to support robust evidence-based policy and regulatory con-siderations for waste management is still a challenge, the government is working in multiple partnerships for sustainable waste management through investments in ed-ucation, cutting-edge research, frontier technologies and capacity building,” Nagy says.

Raising awareness of Qatar’s population on the importance of reducing waste and increasing recycling to protect the envi-

“There should be no reason to worry as this is a natural development, considering the amount of construction that is taking place in the country in view of various infrastructure projects. What the government should look at are ways to dispose of this solid waste.”

MICHAEL NAGYEnvironment Statistics Expert Qatar Statistics Authority

MONEY FROM RUBBISH

ACCORDING TO A QATAR DEVELOPMENT BANK (QDB) REPORT, THE REVENUE POTENTIAL FROM SOLID WASTE CANNOT BE IGNORED. IT IS ESTIMATED TO BE AROUND

QR2.42 BILLION ($663 MILLION) BY WAY OF RECYCLING AND ALSO BY PRODUCING ENERGY, A PRACTICE WHICH IS IN VOGUE IN OTHER COUNTRIES.

HOUSEHOLD REFUSE

COMMERCIAL COLLECTION

CONSTRUCTION & DEMOLITION

INDUSTRIAL

HAZARDOUS

QR979.I6 MILLION($269 MILLION)

QR986.44 MILLION($271 MILLION),

QR387.25 MILLION($104 MILLION)

QRI0.92 MILLION($3 MILLION)

QR58.24 MILLION($16 MILLION)

“While the government is looking to reduce this output by encouraging waste minimisation and recycling efforts, investments in additional processing facilities will likely be necessary.”

NARENDRA KUMARManaging Director Nispana Innovative Platforms

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QATAR TODAY > OCTOBER 2014 > 59

ronment and maintain quality of life, be-sides promoting new patterns in consump-tion and production, are other priorities identified during the review, he adds.

Concrete recyclingAnother example of what can be done with the growing solid waste, which is particu-larly relevant to Qatar as it prepares for the FIFA World Cup, is concrete recycling, an increasingly common method of utilising the rubble generated from renovating or demolishing existing concrete structures.

In fact, the Public Works Authority (Ash-ghal) has already recycled 31 million cu m of excavated material in its projects up to September 15 this year instead of sending the waste to quarries.

Though Qatar is a front runner in the GCC when it comes to converting waste to energy, there are some excellent initiatives by the Ministry of Municipality and Urban Planning to ensure a litter-free Qatar.

As far as recycling is concerned, the fly ash generated as a result of incineration

of 1,500 MTs every day can be re-used as construction material. Besides, these prod-ucts can also be exported to other countries where there is such a demand.

“The main challenge in recycling the waste is to find a market both locally and in-ternationally. There is overall potential for recycled products such as steel, aluminium, paper and plastic products and the govern-ment has to take a decision on the issue,” Kipp says.

Chief Engineer and Undersecretary As-sistant in the General Service Affairs wing of QSA, Sheikh Faleh Nasser J Al Thani, says that the government has been mon-itoring waste management and the coun-try is on the right track as far as the goals set by the National Development Strategy (2011-16) to increase waste recycling from the existing 8% to 38% by 2016. “We are also providing opportunities and encour-aging private companies to engage in waste management practices and also generate power,” he says

“The main challenge in recycling the waste is to find a market both locally and internationally. There is overall potential for recycled products such as steel, aluminium, paper and plastic products and the government has to take a decision on the issue.”

STEFAN KIPPRegional Director, MENAKeppel Seghers

KIPP SAYS, "WASTE IS A BURDEN AND THE

GOVERNMENT HAS TO PAY TO GET IT CLEARED BY

THE COMPANIES.”

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development > tag this

Internal security has been accorded top priority by the governments in the re-gion in view of the growing economies on account of vast oil and gas reserves and all measures are being taken to maintain law and order in the country,

says Brig Sheikh Nasser bin Fahad Al Thani.Though the US State Department has as-

sessed the crime rate in Qatar as low com-pared with other countries, Brig Sheikh Nasser, who is also president of the biennial and the 10th edition of the region’s premier internal security exhibition Milipol Qatar 2014 Committee, says that the government is not complacent as internal security is more relevant to the region, particularly Qatar, in view of its growing economy.

“Qatar, which is hosting a series of in-ternational events including Milipol Qatar 2014, 12th FINA World Swimming Cham-pionships (25m), Qatar PSA Squash World Open and 47th World Military Sailing

Championships later this year, Multaqa Qatar, Cityscape Qatar, Middle East Lux-ury Travel Show and World Men’s Hand-ball Championships in 2015, besides FIFA World Cup in 2022, is determined to see that the events are incident-free,” he says.

Quoting the findings of a survey by trade publisher “En toute sécurite” www.securi-ty-info.com, he says the Middle East’s secu-rity markets grew 12% to a value of 16billion Euros (QR76.79 billion) in 2012, compared with an average of 5.5% growth in overall spending worldwide.

“In the Middle East, the internal state security market segment touched 5.8bil-lion Euros (QR36.67 billion) in 2012, an in-crease of 18%, among the strongest growth seen worldwide. The share of internal state security spent within the entire security market (which also includes security prem-ises of fire and electronic security, etc) in the Middle East is 36%, around double the

equivalent share by percentage in Europe,” he says.

ChallengesIn the 2014 rankings issued by the Econ-omy and Peace Institute in collaboration with the Peace and Conflicts Studies Cen-tre at the University of Sydney in Australia, Qatar stood first in the MENA region, and was ranked 22nd in the world among 162 countries. Qatar has also been acquiring the most advanced technology and the lat-est techniques in its fight against terrorist and criminal activities. “So far, based on the Qatar Crime and Safety Report issued by the Overseas Security Advisory Council (OSAC) in February 2014, the US State De-partment has assessed the current crime rate in Qatar to be low. OSAC was created in 1985 under the Federal Advisory Com-mittee Act to promote security cooperation between American private sector interests

“QATAR IS SECURE”

Qatar Today talks to Brig Nasser bin Fahad Al Thani in the Ministry of Interior (MOI) about internal security in the Middle East and also the

upcoming Milipol Qatar 2014.

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QATAR TODAY > OCTOBER 2014 > 61

worldwide and the US State Department,” he says.

The OSAC “Council” is comprised of 34 private sector and public sector member organisations that represent specific indus-tries or agencies operating abroad. Qatar has been ranked 6th in the MENA region for 2014 in the Global Peace Index.

Security in placeMajor international events scheduled to take place in and be hosted by Qatar, such as the 2022 FIFA World Cup, are charac-terised by the participation and presence of top football personalities and their fans from all over the world as well as VIPs, gov-ernment officials and celebrities.

According to Brig Sheikh Nasser, as ear-ly as now, Qatar is preparing all the neces-sary security arrangements for such a high profile global sporting event. “What I can assure is that we definitely aim at providing the safest and most secure holding of the event,” he says.

Research & developmentBrig Sheikh Nasser points out that, al-though terrorist and criminal activities may have a universal classification as internal security threats, their nature, characteris-tics and manner in which they are carried out may vary in accordance with the local setting of every state or society.

“Thus, sharing of intelligence infor-mation as well as the research and de-velopment that go into the development of internal security solutions are of great importance to all security agencies worldwide,” he says.

Furthermore, through such sharing of intelligence information and expertise, the various states determine similarities or dif-ferences, and therefore help in the crucial decision-making process in which tech-nology and technique may be applicable to specific threats.

“Undoubtedly, both external and inter-nal security threats have become increas-ingly sophisticated. Accordingly, such so-phistication must be met and addressed by even more sophisticated technologies and processes that are applicable to specific localities,” Brig Sheikh Nasser says.

The eventMilipol Qatar, to be held between Novem-ber 10 and 12, is an opportunity for local companies specialised in security to pro-mote their products in the Middle East and the world, opines Brig Sheikh Nasser.

“We are looking forward to receiving

guests from around the world and specially from the GCC and the Middle East and we are hoping that this year’s exhibition will be one of the best and even better than the 2012 edition,” says Brig Sheikh Nasser.

Milipol Qatar, which was instituted in 1996, has been organised by the MOI, in partnership with Comexposium from Par-is. Through the years, this event hosted by Qatar has grown and is considered the most important security event conducted in the region.

“Participating security agencies will benefit from the presence of regional and even global exhibitors and experts, as well as government agencies incharge of secu-rity-related responsibilities. Not only do these security agencies stand to benefit from learning about the latest technolo-gies and techniques in internal security, but also profit from potential business opportunities,” says Brig Sheikh Nasser.

“It is expected that organisations – both in the public and private sectors – will have increased spending on security-related solutions due to the growing sophistication of potential security threats,” he says.

Significantly, the discussions as well as products and services that are to be show-cased by exhibitors during Milipol Qatar 2014 will most likely have complementary applications for securing such high-profile international events.

Brig Sheikh Nasser says that the issue of internal security has encompassed strong cooperation among states and border secu-rity agencies particularly due to increased movement and travel of people – either for leisure, livelihood or business purposes.

“The Ministry of Interior will have a 1,016 sq. m. pavilion including Ministry de-partments and Milipol Qatar Committee. Those departments include: Information Systems, Coastal and Border Guards and Prevention Security in collaboration with Public Relations, Industrial Security, Crim-inal Evidence and Information and NCC, in addition to the Internal Security Forc-es (Lekhwaya) who will participate with a 1,056 sq. m. pavilion,” he adds

“With internal security being a topmost priority in the region and Qatar due to the rapid economic developments and the presence, vast oil and gas resources, it is expected that organisations – both in the public and private sectors – will have increased spending on security-related solutions due to the growing sophistication of potential security threats.”

BRIG SHEIKH NASSER BIN FAHAD AL THANI

Ministry of Interior

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business > tag this

While the debate about Qa-tar being allowed to host the World Cup rages on outside, within the coun-try there is a quiet and determined progress on

knowledge accumulation. The credentials of the speakers invited to the two-day lec-ture series on preparing for major sport-ing events, some of whom were top names behind the most successful and celebrated of sporting ventures of recent times, em-phases goes to show Qatar’s commitment to learn from the best and implement those lessons to live up to its Expect Amazing campaign. We had a chat on the sidelines with a very engaging speaker with a deep connection to the FIFA 2022 World Cup bid – Nigel Rushman of Rushmans which

was behind Qatar’s winning bid..

From bid to kickoffNigel Rushman is a veteran of many a me-ga-sporting event. With his firm special-ising in several verticals like media ser-vices, accreditation, safety and security, staffing, etc., Rushman has been part of some of the biggest sports tournaments of the past decade, often as a consultant to bidding countries (as in the case of Qatar) and sometimes delivering end-to-end solu-tions, like in the 2007 Cricket World Cup in the West Indies, where he was contracted as the event director andwas in charge of almost every aspect of delivery of the mega- cricketing spectacle.

The first order of business for an organi-sation committee after winning a bid is ze-roing down on its hosting strategy, accord-ing to Rushman. Qatar, post 2010, would have sat down and taken a long hard look at how it’s going to go about hosting the cup within the guidelines and regulations laid down by FIFA and introspect on its event management capabilities with respect to all the specific functional areas and services. With this in place, it would have gone ahead to call in the expertise of sporting profes-sionals and organisations either to help with the planning or train their own peo-ple. It looks like Qatar, with more lead time than any other country in the past, is opting for a combination of the two.

“Young people in Qatar [outside the Su-preme Committee] don’t want to go to the other end of the world and to learn the event management business,” Rushman says. “They’d much rather be trained by institutes like Josoor.”

“There are a lot of specialist agencies and we can only survive by operating global-ly,” says Rushman whose team, which has

WORLD CUP, AHOY!The various sporting event management experts who gathered at Josoor Institute’s ‘Introduction to Running Major Events’ weighed in on various issues ranging from preparing a winning bid to delivering a safe and secure event.

"More often than not, it’s the media, not the public, which decides the success or failure of an event."NIGEL RUSHMANFounder, Rushmans

BY AYSWARYA MURTHY

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QATAR TODAY > OCTOBER 2014 > 63

numbered between 50 and 2,000 in the past, has presence in several far-flung coun-tries like the UK, Monaco, Qatar, South Af-rica and Russia. “Our business model is to recruit as many people as possible in the country we are working so at the moment we have a team in Australia and New Zea-land working on the next Cricket World Cup, and one just wrapping up affairs in the Caribbean where we were involved in the Caribbean Premier League,” he says.

For many working on these events for the first time, the pace of the work that goes into them comes as a shock; preparation that stretches back years, leading up to a frenzied few weeks before the event, the ex-ecution and the almost anti-climatic wind-ing down. “Running a mega-event is like building a company for years, running it for a few months and then dismantling it after,” he says. For the local organisers it could be pretty traumatic, saying goodbye after working together on a project for months on end. But for Rushman and his fellow spe-cialists, it’s on the next country and the next event, where, more often than not, they bump into the same people all over again. At London Olympics 2012, Rushmans was in-volved in running the media centre, studio sets and the London Ambassador volunteer programme among others. “The Olympics is superbly complex with many sports span-ning many locations, all requiring different specialists down to photographers and tele-vision crews,” he says. But whatever be the event, you’ll find a Rushmans person in-volved; somewhere buried and out of sight but very present nonetheless, he says.

The media decidesOne of the more interesting aspects of deliv-ering events around the world for Rushman is the cultural differences, working with all kinds of people reacting in different ways to situations. “Through the course of my job I have made friends from Jamaica to the US to Russia and they all have their idiosyncra-sies. The British are difficult to work with,” he laughs, “The Jamaicans have a kind of la-conic approach to work. But it doesn’t mat-ter because the most important thing is to meet the expectations of the stakeholders.” In his experience, he has realised that, more often than not, it’s the media, not the pub-lic, which decides the success or failure of an event. “Take the 1996 Summer Olympics in Atlanta. Marred by logistic issues in the beginning and the bombing, the media de-clared that it was badly organised and wrote so everyday that it was the worst Olympics ever. But it wasn’t.” This is why Rushman

PROACTIVE PR

THE ISSUES OF TEMPERATURE ON THE FIELD AND PLAYERS’ HEALTH WERE DISCUSSED THOROUGHLY DURING THE BID, RUSHMAN SAYS. “REMEMBER, WE WERE NOT BIDDING TO THE PUBLIC, WE WERE BIDDING TO THE 22 MEMBERS OF FIFA. IT WASN’T THE JOB OF THE BID TO WIN PUBLIC ACCLIMATION. IT WAS TO WIN THE HOSTING RIGHTS. WHICH IT DID.”BUT SUBSEQUENTLY THERE SHOULD HAVE BEEN A LOT MORE PR AND PRO-ACTIVE BRAND MANAGEMENT FROM QATAR, HE FEELS. “QATAR IS DEFINITELY NOT SPEAKING ENOUGH ABOUT THE BENEFITS OF BRINGING THE CUP TO THE REGION. INSTEAD IT HAS ALLOWED THE MEDIA TO RUN THE AGENDA; THIS IS CERTAINLY IN THE CASE IN THE UK.”

(Top) Qatar wins the FIFA World Cup 2022 bid; attendence at the "Introduction to Major Events" course by Josoor Institute

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says that it’s doubly important to take good care of the press. “More people will see the World Cup in Qatar through the eyes of the media through television commentary, the social media and newsprint, if it still exists.”

But with the scathing media attacks of the last few months, has the media already passed judgment on the 2022 World Cup? Rushman denies that. “No. I don’t think the media has already decided that the World Cup here is going to be bad. If you carefully look at media reaction to any major sport-ing event, a pattern emerges. At the begin-ning, when the bid is announced, the media always is skeptical, then comes the eupho-ria with the winning of the bid, followed by cynicism, doubt and fear, and finally the celebrations and the praise of the unwor-thy with the close of the event. It happens with all events and this is not just unique to Qatar which has come into a huge amount of unwanted media attention, especially in England.” He says none of the dedicated sports newspapers in mainland Europe has been as vitriolic as the “Murdoch press”. The newspapers in the UK have more sports pages than any other country on earth, he says. “You won’t find any newspaper out-side of the UK with 10-12 pages in the back dedicated to sports. And they have to fill it. And when there’s nothing else of going on, they probably say to themselves, ‘Let’s have another bash at Qatar. That’s worth a go’.”

“If you were in Asia you might not even know of the criticisms,” he says. There is a particular cynicism and aggression in the English media, he says. “It was a huge in-comprehensible surprise to the world of football when Qatar won the bid, this tiny country with all the obvious challenges. I don’t think they have gotten over it yet. But they will,” he says reassuringly." And it will get better.”

The best bid wonQatar won the right to host FIFA 2022 World Cup because it put forth a “much

better considered and constructed bid,” Rushman says firmly adding that he’ll go to his grave saying that. “The bid was very well focused on winning and there were so many reasons why Qatar won. FIFA was keen to take the World Cup to new areas – South Africa, Russia, the Middle East. From Qatar it could reach out to a third of the world’s population in Asia and it was in a great time zone for television, with matches being screened during the prime broadcast time in Europe.” He also gives an example of the bid presentations to point out the little things that mattered in the end. “Out of the 22 members the FIFA Ex-ecutive Committee, only four were native English speakers. But Qatar was the only country that presented in English, French and Spanish. The English bid spoke about how wonderful their premiership football is what which, was not the Executive Com-mittee wanted to hear; it was so wonderful because they were stealing players from the European leagues. The moment I heard them talking about the EPL, I knew that they had lost their bid.”

So despite all the allegations around Qa-tar’s bidding process, Rushman says there is nothing he would do differently if given the chance. “We knew even while bidding that we’d be highly scrutinised if we won and so were extra diligent even when oth-ers were bending the rules of the bid. We certainly anticipated these problems [but I didn’t expect it’d be quite so ferocious]; the corruption charges might have come anyways. People would have been curious, envious, disbelieving that Qatar won the bid on its merits no matter what we did,” he says.

But it did. Each bidder would fully use whatever resources they had at their dis-posal and for Qatar one of those resources happens to be money. Rushman explains how the two World Cups that were award-ed simultaneously to Russia and Qatar make better business sense. “These were the only countries that had no economic challenges, were hugely wealthy and most likely to stage the best world cup under the circumstances. England was broke with not much government funding in sight. FIFA didn’t want to host across two coun-tries again (Japan and Korea), the USA was in the throes of a major recession. And here were the deep-pocketed Russian and Qa-tari governments promising whatever was needed. If you were FIFA and 95% of your revenues came from the World Cup, which would be the safest way to go?” he asks quietly

THE FEWER THE BETTER

AFTER HAVING WORKED SO HARD ON THE BID, WE ASK RUSHMAN HOW HE FEELS ABOUT QATAR REDUCING THE NUMBER OF STADIUMS FROM TWELVE TO EIGHT. “THAT’S OFTEN THE WAY,” HE SHRUGS.“IN RUSSIA, FIFA WANTED TO HAVE ONLY EIGHT STADIUMS IN PLACE OF THE PROMISED TWELVE BUT RUSSIA WANTED AT LEAST TEN BECAUSE THEY HAVE A HUGE COUNTRY AND THEY WANTED TO BUILD. IT’S A CONTINUAL NEGOTIATION AND EACH PARTY HAS THEIR OWN REASONS. FIFA IS PARTICULARLY CONSCIOUS OF CRITICISM OF COUNTRIES BUILDING STADIUMS FOR THE WORLD CUP WHICH ARE LATER NOT BEING USED. THERE ARE STADIUMS IN SOUTH AFRICA FALLING TO DUST. FIFA DOESN’T WANT THAT HAPPENING.” HE ALSO SAYS THAT HAVING FEWER STADIUMS TO MANAGE IS BETTER FROM AN ORGANISER’S POINT OF VIEW. “EVERY EXTRA STADIUM YOU HAVE IS MORE WORK AND MONEY. NOT JUST BUILDING COSTS BUT STAFFING, SECURITY, TRANSPORT... IF SOMEONE COMES TO ME ASKING TO REDUCE THE OPERATING BUDGET, I ALWAYS TELL THEM TO TAKE AWAY A VENUE.”

Qatar is home to multi-purpose stadiums like the 40,000-seater Khalifa International Stadium which hosted the final of the 2011 AFC Asian Cup

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SAFETY IN THE STADIUM

On the eve of the first Securing Sport conference that is being held outside Qatar, Internationl Centre for Sport Security Vice Director- General Heinz Palme takes us into the inner workings of how to ensure security around a mega-sporting event.

Between October 6 and 7, heads of sporting bodies from around the world gathered at the icon-ic Lancaster House in London to discuss improving safety, security and integrity in sport

globally. Spearheaded by the Doha-based International Centre of Sport Security (which opened an office in London recently and plans to open two more in Geneva and Brussels), the conference, held under the theme Sport Under Threat, featured talks by the likes of legendary footballer Franz Beckenbauer, Lord Sebastian Cole and Javi-er Tebas. When the non-profit was created four years ago, it was a surprise to many in the industry that such a well-funded body with a broad agenda (involving security and risk advisory, training, research and knowl-edge gathering) didn’t exist before, consid-ering there had been so many incidents of violence in the history of sporting events. It was not until after watching the negative at-tention the security situation was bringing to the World Cup in South Africa that Pres-ident of the Qatar International Academy

for Security Studies and former Lieutenant Colonel in the Qatar Armed Forces, Mo-hammed Hanzab, decided to bring together security experts from around the world to set up a centre dedicated to studying and sharing best practices in this area. In the short time that it has been operational, Vice Director-General Heinz Palme says it is now a well-recognised authority on this issue with a big network of partners world-wide, like UNESCO, UNICEF, government organisations, World Snooker Association, the Spanish, German and Italian football leagues, etc.

Palme, who is a three-decade veteran of sports security, having worked most of his life with the Austrian Football Associa-tion and been deeply involved in securing the two FIFA World Cups in Germany and South Africa, is joined by a high-profile team that includes a former policeman and Head of Security for the 2006 FIFA World Cup Germany, the Head of Security at FIFA who was also previously at INTERPOL, and various senior personnel responsible for se-curing some of the biggest sporting events

Crime rates and local protests against the

World Cup resulted in high security during the

matches in Brazil this year.BY AYSWARYA MURTHY

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in the last decade, be it the Olympics or foot-ball, rugby and cricket world cups. "We have some of the best-informed people working with us with links to political, sports and inter-governmental organisations. This ac-cess to active channels of information led us down the path of anti-manipulation and we realised it was just as important to ensure integrity in sport,” he says.

Undertaking extensive, behind-the-scenes research for their clients, the ICSS often sends investigative teams to major events to look out for signs of match ma-nipulation when they suspect something’s afoot or hear it through the grapevine. They also coordinate with architects and stadi-ums planners to ensure that the infrastruc-ture being put up meets security standards. Under a nine-year contract with the Su-preme Committee for Delivery and Legacy, the ICSS is doing this work for all the stadi-ums coming up in Doha and verifying that they have the right design concept in place, that they are both customer-friendly and safe. “We have also made a report about the experiences in security during the last two football world cups; about how those coun-tries dealt with risks and challenges. We then started to identify and prioritise the risks to the 2022 World Cup. Additionally we have commenced training exercises for small groups of police and armed forces to start preparing them for 2022.” Palme lists their contributions over the year to Qatar’s World Cup efforts, noting that their jobs and responsibilities will evolve and grow as we get closer to the big day.

But the organisation has a global agen-da and over the years it has been acting as consultant to FIFA, advising the Confed-erations Cup, and conducting discussions with UEFA for organisation review and new setup. “We can’t say who but we are about to sign a contract with a famous club in Eu-rope who are starting construction on their new stadium,” he says. The organisation is

also partnering with academic institutions like Sorbonne University in France to re-search and report on match manipulation and illegal betting. They have also teamed up with Harvard on a project on making sport sustainable by generating a positive image. “We prepared an index for bidding countries to identify the white elephants and understand developments they should have in place before embarking on the bid, which we offer to city governments and local sport bodies,” Palme says.

Palme’s mantra is ‘Maximum Security with Minimum Restriction’ and most au-diences would agree. It’s important to note that the fans are there to have a fun time and overly obvious security like police-men in heavy gear can dampen the experi-ence. “In the stadium, no one wants to see

policemen on the pitch. They should se-cure the environment but also be invisible. At Rio Maracena, there were ten rows of policemen physically checking my ticket. It was ridiculous! Safety and security are foremost to a customer service, and how to approach people and address them are important issues,” he says. “This is why creating a strategy and philosophy is the most important recommendation we can make to any organising body. They have to be open about greeting people from all over the world who love and want to celebrate the sport. They are normally not hooligans, they have to have a good time and leave the country with a positive image.”

So when you are creating the strategy for your event, the security aspects must also fit into it, he says. “If Qatar wants audiences to Expect Amazing, the security team must want to do.” Palme gives the example of the World Cup in Germany in 2008. “Granted, it was easier there because we had a lot of ex-perienced people, but we made certain that our slogan – A time to make friends – was ingrained in each person who was working towards the event. Everyone, including the police, was spreading the message and was primarily very warm and welcoming, which definitely helped to prevent any incidents of violence or hooliganism,” he says.

But preparation is key, he warns, because anything is likely. “You can’t wait till some-thing happens. You need a plan, a definite set of operational procedures for any kind of eventuality.” Political issues often spill over onto the pitch, like the incident in Port Said in 2012 which killed 74 people and in-jured over 100. It was big concern during the UEFA championships in Poland and Ukraine in 2012; Ukraine was in the throes of political turmoil (which eventually came

ICSS IS WORKING ON THE FIFA HANDBOOK ON SECURITY. IN THE PAST WHEN A COUNTRY STARTED

A BIDDING PROCESS, IT HAD MUCH LESS INFORMATION TO GO ON AND

OFTEN HAD TO START FROM SCRATCH. “WHEN WE WERE PREPARING FOR

THE WORLD CUP GERMANY, WE HAD MORE OR LESS NO DOCUMENTS FROM

PREVIOUS EVENTS,” PALME REMEMBERS. “NOW FIFA HAS STARTED TO THINK ABOUT ITS KNOWLEDGE-TRANSFER

PROGRAMME AND DIFFERENT AREAS OF THE ORGANISATIONAL AREAS HAVE

BEEN CHARGED WITH PRODUCING HANDBOOKS.WE ARE DOING THE SAFETY

AND SECURITY PART.”

HEINZ PALME Vice Director-GeneralInternational Centre for Sport Security

Spectators at Port Said Stadium remember the victims of the riots two years ago.

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to a boil this year) and there was cautious planning to eliminate any risk of violence.

“Making risk assessments and creating crisis management scenarios are critical. In Germany, we compiled all possible risks from every department, prioritised the sce-narios (from close to 250 risks, we made a list of the top 10 that we wanted to focus on, like a bomb threat in the stadium) and then ran through each of them. We had two whole days of high-intensity training with venue managers and security heads of first response and immediate plan of action. We did something similar in South Afri-ca, spending half a day in each of the ven-ues, giving them a catalogue of risks to be prepared for,” he says.

High crime rates have been a specific risk in the last two football World Cups in South Africa and Brazil. “This stopped a lot of peo-ple from going for the game in South Africa. Unfortunately, because the government didn’t do enough to counter this, the media took leadership on this to show the country in a bad light, which it didn’t deserve. The private security industry in sports didn’t exist in South Africa which was also an added risk,” he explains.

Brazil (which Palme believes was just handed over the World Cup and hence was lackadaisical) additionally had to deal with mistakes in strategy planning and consequent delays in infrastructure deliv-ery. “They let time slip out of their fingers and when they finally realised they had to speed up, it was too late (though thankfully it turned out fine in the end). How can you start operations and training when the fa-cilities are not ready in time?” he asks. It’s doubly important because we keep incor-porating new technology into our stadiums and it’s imperative that we have enough time to test them before inviting the pub-lic in. Also, with the proliferation of social media, any small incident can result in loud echoes online, he reminds us, insisting again on the need to plan, think and consid-er everything. “Security is not a feat for trial and error,” he says.

Palme carefully sidesteps the issue of the volatility in the Middle East and how it might affect the security planning for 2022. It’s understandable; the situation is chang-ing every day and any speculation about eight years down the line is completely pointless. But there is no doubt that it’s on everyone’s mind. “Of course, it’s an import-ant factor to consider. When we talk to the Supreme Committee we raise doubts about what could be challenging and risky. But it can be addressed only in cooperation with the authorities and the political situation is largely government-driven and there isn’t much we can do there. We don’t know what’s going to happen in the next eight years but the only thing Qatar has to do is run through the catalogue of measures that must be taken. It’s relatively easy to say, but it gets very complex, spilling over into cyber security and other related fields,” he says.

The important thing is to be aware that you are hosting the world and that the World Cup is a big opportunity for global recognition

Germany prepares for its World Cup in 2006. Clockwise from left: A bomb disposal robot attempts to safely detonate an explosive; security officials study a stadium evacuation drill; Emergency service practice evacuation injured spectators; security forces participate in a mock hijacking scenario (with a planeful of willing journalists; a crowd control exercise in progress.

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WELCOME TO THE FUTURE

Five years from now, our daily lives will look unrecognisable. Cisco

Qatar’s General Manager tells Qatar Today just

how pervasive and irreversible this change,

that is coming fast, is going to be.

It is no secret that the pace of tech-nological change is increasing expo-nentially. In this current stage of the continually telescoping speed of evo-lution, change is frighteningly and excitingly imminent. We know, in our

hearts and minds, that nothing will ever be the same again; and yet the possibilities of tomorrow just keep surprising us every single time. While we have been hearing murmurs for a while about the brave, new connected world we are all heading towards – fridges talking to shopping carts and cars linking up with thermostats at home – we are starting to see the first signs of its realisation, some right here in Doha.

Cisco is one of the voices that has been

fervently talking about the ‘Internet of Ev-erything’ (IoE) for some time now – all the while continuing to work on “adding more intelligence and capabilities to the network and merging its different layers to support billions of devices and all their applica-tions”, according to Mohammed Hammou-di, General Manager of Cisco Qatar. Now it’s starting to shout from the rooftops, vying for that global leadership in IoE that will give it the ability to influence and impact from the front. The recently announced Cisco Connect in Doha is only the latest such effort.

Scheduled for November 18, this edition (unlike the last one in 2012) will focus ex-tensively on the possibilities around IoE. “This year a lot of interest has been gener-ated and we’ll be talking about the solutions that have been implemented in other parts of the world and the various ongoing pilot projects,” says Hammoudi. “It’s an oppor-tune time to start pushing for it and create and enhance awareness of its potential. We hope that this will help people here in Doha think differently and make them more con-fident about the possibilities of the future.”

“What we have now are the building blocks of this new concept where you are connecting people, resources, processes and implementing technology in innova-tive ways,” he continues, saying that in this unchartered territory, all the previously known or accepted standards of operations, requirements and cases will have to change. “Earlier it was the IT professionals who were setting the limits on technology; now, with the ‘democratisation’ of technology, it’s the users who are creating demand and set-ting requirements, opening up the ability of people to innovate,” he says.

Cisco is not just talking possibilities; it has cold, hard numbers to back it up. The prediction of 50 billion devices and $19 tril-lion of added revenue by 2020 is staggering. Is it really going to be that fast? Where is the alarm clock that orders your coffee maker

business > tag this

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to start brewing your first cup of java five minutes before it wakes you up? Hammou-di says it’s just a matter of time. “The cycle between the announcing of new products and their adoption is shrinking. Once peo-ple lock on to something, the proliferation will become faster. The acceleration starts happening after a certain threshold. These projections have been done by companies that look at market trends and technology adoption and usage scenarios,” Hammoudi points out, while telling us why it’s not as unbelievable as it seems.

But there’s a lot of work to be done yet. In addition to the evolution of network ca-pability and processing power, who/what provides content and how it is treated will also need to change. “For example, say you have an app that gives you traffic updates. Where does this information come from? The traffic department? Or a company that uses live satellite feeds? Or from thousands of individuals drivers sending pictures and coordinates of where they are, with an in-telligent network aggregating these inputs and creating a map of the traffic situation at the moment in time that is available on your phone?” Hammoudi explains. But are we where we should be is a difficult question to answer.

Because of Qatar’s size, population, net-work readiness and vision, it could poten-tially be a leader of this transformation on a global level. Be it in smart cities, health-care, retail or government services, we are already starting to see what tomorrow will look like, right here in Doha. It is no coin-cidence that Cisco counts Sidra Medical Centre and Hamad Hospital among its im-portant clients; because the most exciting potential of IoE are the “applications that impact the quality of human life around health”. “This will impact our ability to communicate and share information among stakeholders in a more impactful way,” he says, giving a peek into the possibilities. “Say your doctor who recommends a blood test. You go to the lab but when the test is done, you don’t have to go pick up the re-sults. It can go directly to the doctor who can then email you the prescription you need (directly sent to the pharmacist who can fill it for you) or automatically make a follow-up appointment. Imagine how much time you’ll have saved on traffic and the wait at the clinics and labs.” In the not-so-dis-tant future, your phone will be able to track your vital stats and alert you to, say, an in-crease in your blood sugar levels or irregular heartbeat, and thereby give physicians a wealth of information recorded over time

resulting in better diagnosis. “Telepres-ence solutions are already being used to bring specialist advice to people living in remote areas. There is a lot of work being done in the healthcare sector in Qatar and people are very keen to implement these solutions,” he says. At Hamad International Airport, which is among Cisco’s customers, IoE can be used on a variety of applications like medical recognition, which will become increasingly important to stop the spread of diseases, considering the rise of Doha as a major transport hub.

Cisco is also working with Qatar National Convention Centre on a solution that can help attendees preregistered for a confer-ence with their scheduling and, once they are on the premises, guide them in real time to the right location, giving them all the information they need in the process. Some of the newer malls coming up have tie-ups with Cisco to help track customer behaviour. “With the use of an intelligent network, information can be gathered (with full consent, of course) about which shops you visit more, where you spend the most time, or what products you are interest-ed in, so as to understand the behavioural patterns to create specific programmes or displays.” And it’s cheap to implement too, he says. “It’s just a matter of using the exist-ing wifi network with some extra capability which will enable you to do this kind of anal-ysis on people who connect to that network. It doesn’t cost much and that’s the direction the world is moving towards,” he says.

In the sports industry, IoE has the po-tential to change the game for players and spectators, especially around the viewing experience. “You can monitor the health of the players in real time. Change the face of advertising and analysis. Reduce the load on the telecom networks with intelligent local networks that can support commu-nications that stem from 50,000 people simultaneously sharing photos, videos and other information. Maybe even have a hot-dog delivered to your seat, who knows,” Hammoudi says.

Who knows, indeed! But this year partic-ularly has seen a dramatic increase in the chatter around IoE. What was previously being spoken about on obscure tech blogs is now being brought to the notice of industry leaders, CTOs, governments and the general public. Consumer Electronics Show, Mobile World Congress, South by South West Inter-active... everywhere we go, the concept fol-lows us, staring us in the face, prodding us to recognise the fact that the future is here, right now

IOE PREREQUISITES

“We can never have enough bandwidth and we have to ensure that it reaches every single home and device. Even now we don’t have the full use of the bandwidth that is delivered to us. Also the cost needs to come down more so that more people will use it more extensively. It’s also important to build human capability to manage and evolve these technologies.” MOHAMMED HAMMOUDIGeneral ManagerCisco Qatar

ARE YOU READY FOR THE FUTURE?

WE CHOSE THIS HANDFUL OF EXAMPLES TO SHOW YOU JUST HOW IoE IS EXPECTED TO CHANGE YOUR LIFE.

ENVIRONMENTAL MONITORING USING SENSORS TO ASSIST IN MONITORING AIR OR WATER QUALITY, ATMOSPHERIC OR SOIL CONDITIONS, AND EVEN MOVEMENTS OF WILDLIFE AND THEIR HABITATS.

CONNECTED VEHICLES CAN ADJUST SPEED FOR FUEL EFFICIENCY, PREVENT ACCIDENTS AND CALCULATE OPTIMAL ROUTES.

SMOKE ALARMS THAT NOTIFY THE NEAREST FIRE STATION IF NO MOVEMENT HAS BEEN DETECTED IN THE HOUSE AFTER ACTIVATION.

THE SENSORS IN YOUR BED CAN DETECT YOUR SLEEP CYCLE AND INSTRUCT YOUR ALARM TO DELAY WAKING YOU UP (AFTER CHECKING YOUR SCHEDULE ONLINE, OF COURSE).

PARKING LOT SENSORS THAT PINPOINT THE EXACT LOCATION OF A VACANT SPOT TO YOUR PHONE OR CAR.

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development > tech talk

The telecom industry in the Middle East is expanding at an unprecedented pace.

Driven increasingly by the high de-mand for smart personal devices to a previously under-served mar-ket, we are also witnessing mobile

data services gaining prominence in the business models of Middle East operators as many transform from voice-centric to data-centric. They realise that in order to protect margins and to increase data prof-itability, they have to expand across the val-ue chain and move from volume-based to value-based data offerings.

The Qatari government is further set to support information technology (IT) with many initiatives and projects. An example of these initiatives is the launch of a gov-ernment data centre by the Ministry of Information and Communications Tech-nology in Qatar to host sensitive IT sys-tems and infrastructure in the government sector. This provides solutions to increase work efficiency in institutions, ensure the security of information, and contribute to the unification of procedures leading to re-duced costs. According to the Ministry of Information and Communications Tech-nology, the telecom sector alone is expect-ed to witness a remarkable growth rate of 9% to 12% in the next five years.

In this context, investing in cloud ser-vices and technologies becomes impera-

tive. According to Gartner, the public cloud services market, for example in MENA alone, is on pace to grow 23% in 2014 to to-tal $629 million (QR2.29 billion). So where do regional operators stand today and what do they need to do to succeed in their cloud transformation? IBM believes that there are three core areas on which operators will need to focus in the short to mid-term in order to truly win on cloud.

From commodities to cloud ecosystemsBoth mobile and fixed broadband networks as well as data centres – in which telecom-munication providers in the region have strong capabilities – will play a major role in the shift to cloud. For telecom providers, their brand value and customer ownership put them in a strong position to shift their revenue models into the digital services territory, and indeed the cloud is the most efficient and effective way for telecom-munication providers to move from just offering commodities to delivering digital services to their customers.

For example, Software as a Service (SaaS) offerings today face few entry-lev-el barriers and that has spurred competi-tion. From gaming development platforms to IT management and mobile solutions, SaaS offerings can be rapidly deployed and

CLOUDTO THE

JOURNEY

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scaled to test demand at negligible cost. Many of these innovators have seamlessly integrated technology, sales, and custom-er support to develop not just services but entire ecosystems that cater to a custom-er’s needs. That does, however, mean local telecommunication providers will face increasing competition from other tech-nology innovators whose expertise lies in service delivery.

Knowing your customerTo provide a differentiated user experience and create new data revenues through per-sonalised cloud offerings, many telecom providers are striving to better understand their customers in the data era. Voice ser-vices are a well-understood, profitable and low-risk business. Usage patterns are rath-er predictable and market segmentation is straightforward.

Data business is fundamentally differ-ent. Users of broadband-enabled mobile devices gain ubiquitous access to a huge number of online services and mobile apps. Every smart device is highly personalized to meet the exact needs of its owner. In the “Data Era”, replicating voice market strat-egies does not work anymore.

The wealth of customer and service us-age data that operators possess is one of their greatest assets. By applying Big Data and Analytics to this data, they can gain better insight into their customers’ needs and usage patterns. This enables creation of cloud services that resonate with specific customer groups and micro segments. The most effective cloud offerings in the Middle East so far have typically involved analys-ing users’ location, quality-of-service, and usage preferences to deliver tailored digital services and applications to a “customer of one”.

All of this requires providers to rapidly understand how cloud as a new delivery and business model can be applied to ad-dress the wishes and needs of individu-als, small businesses, enterprises, and the public sector.

Dismantling bordersThe complexity and scale of the Middle East’s telecom market require service pro-viders to approach cloud as far more than just an IT play. To create and monetise the mobile data services enabled by the cloud, telecommunication providers must bring together all internal departments of the business, from finance to marketing and customer service. Unifying different

departments around cloud will result in business plans that avoid many of the ear-ly pitfalls in Middle Eastern deployments, including a lack of clear key performance indicators and revenue targets for cloud adoption. It will also help providers more objectively assess impediments to cloud services, like data sovereignty, and their actual impact on proposed offerings.

Adapting processes from global IT ser-vice providers – and learning from success-es and failures in overseas markets – will also help local operators to ensure their cloud offerings are first and foremost viable business products. For example, the issues surrounding cross-border data transfers are sometimes detailed in the national leg-islation. Yet even in highly-regulated coun-tries like Saudi Arabia and Morocco, these laws typically relate more to the protection and privacy of customer information than to its movement between countries.

Advanced cyber-security measures now available can be applied to data centres, networks and even end users, thereby mitigating these fears of non-compliance. When coupled with robust policies and breach monitoring, data sovereignty need not limit the potential of cloud services to reach untapped and geographically diverse markets. With an emphasis on visibility, control and automation, IBM cloud secu-rity solutions help meet regulatory compli-ance efficiently and defend against the lat-est threats. With IBM, telecommunication providers can have a robust, security-rich cloud tuned to their customers’ specific needs. Establishing a clear security road-map with the right mix of capabilities to secure foundational technologies lays the groundwork for cloud success.

The region’s leaders and decision-mak-ers should look towards cloud as a plat-form of the future, using infrastructure as a foundation for creating a digital ecosystem rather than a commodity in itself. These new cloud-based services must be informed by a deep understanding of customer be-haviours and addressed in a unified manner within the operator’s organisation across different departments and even multiple geographies. Partnering with cloud tech-nology leaders and adopting these best practices will put regional telecommu-nication providers in good stead to move their revenue models from products to ser-vices, and to create attractive cloud-based offerings that will allow them to compete effectively with global Internet players

BY AMHED MAROUFGlobal Technology Services LeaderIBM Middle East, Saudi and Levant

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development > tech talk

Those Apple lovers who have been hop-ing for a larger screen, your prayers have been answered. The new iPhone 6 comes with a 4.7 inch screen, larg-

er than standard Apple screens, while the iPhone 6 Plus sports an unprecedented 5.5 inch display, ushering Apple into the unchartered ‘phablet’ territory. The slim, 0.27 inch thick iPhone 6 with its Retina HD display comes in three colours – gold, silver, and space grey – and also sports an 8-megapixel iSight camera. Another long-awaited feature is the inclusion of NFC with an entire mobile payment system built around it (however, the NFC can’t be used for other purposes like transferring data). The iPhone 6 Plus has a higher reso-lution screen and also optical image stabil-

isation in the camera which helps steady a shaky hand.

Despite the problems with the new iOS8 and stories of iPhone 6 Plus bending within a few days’ use, Apple fans thronged Villag-gio shopping mall where the two latest edi-tions went on sale at the Vodafone store at exactly one minute after midnight on Sep-tember 27. The crowds reportedly didn’t subside till 3 a.m. The telecom operator announced plenty of offers along with the new phones like free data plans on the 4G network for both its prepaid and Red cus-tomers. Additionally, ten lucky customers had their mobile phone bill waived for an entire year. Ooredoo also made the phones available for customers across its stores on the same day.

NEW iPHONE OUT IN STORESThe iPhone 6 and iPhone 6 Plus bring the whole Apple experience onto a bigger screen.

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SINGAPORE-BASED OBI MOBILES, FAMOUSLY CO-FOUNDED AND BACKED BY FORMER APPLE CEO JOHN SCULLEY’S INFLEXIONPOINT, IS PREPARING AN AMBITIOUS LAUNCH INTO THE MIDDLE EAST MARKET WITH A RANGE OF NEW PRODUCTS THAT INCLUDES MOBILE DEVICES FOR THE PRICE-CONSCIOUS CONSUMER THAT RUN ON ANDROID KIT KAT PLATFORM, POWERED BY MULTI-CORE PROCESSORS, INCLUDING AN OCTA-CORE OPTION, DUAL-SIM CAPABILITIES, LARGE SCREEN SIZES AND HIGH QUALITY CAMERA OPTIONS.

For $9,000 (QR32,700) a year ($6,000 or QR21,840 for initiation and another $3,000 or QR10,920 as annual fee), you can buy yourself premium profile space on Netro-politan, “an online country club for people with more money than time”. With most-ly the same features as that available on Facebook (but with fewer posts about your

less fortunate friends’ mundane problems), membership comes with online storage space, strict secrecy and an ad-free experience. Founder James Touchi-Peters founded the site to provide patrons “an environment where you could talk about the finer things in life without backlash”.

The smartphone manufacturer, which witnessed its global launch in India earlier this year, turns its sights on the Middle East market.

MIDDLE EAST IN OBI MOBILE’S CROSSHAIRS

RISE ABOVE THE PROLETARIATNetropolitan is the Facebook for rich people; the online equivalent of living in a better neighbourhood.

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Alibaba’s Initial Public Offering at the New York Stock Exchange is the biggest to date.The ubiquitous Chinese company went public on the September 18 with its shares priced at $68. By the end of the day, the shares were trading at close to $93, raising a massive $21.8 billion for the tech giant, which dominates close to 80% of the e-commerce market in China. The astounding response to the IPO is seen as a bet on China’s growing middle class and their spending power and also a nod to the company’s diversified presence in China. With the IPO, Alibaba’s valuation is pegged at $231 billion, according to the Guardian, which is more than Facebook or Amazon and eBay combined.

MOBILE USERS OF TWITTER WERE GIVEN THE OPTION TO DIRECTLY BUY PRODUCTS THEY SAW ON THEIR TIMELINE. TWEETS FROM A FEW BRANDS, ARTISTS AND CHARITIES HAVE STARTED COMING WITH THE

‘BUY’ BUTTON WHICH REDIRECTS THE USER TO A PAGE WHICH PROVIDES ADDITIONAL DETAILS AND

RECEIVES SHIPPING INFORMATION. ONCE CONFIRMED, ORDER INFORMATION IS SENT TO THE MERCHANT

FOR DELIVERY, AND THE USER IS RETURNED TO THEIR TWITTER FEED.

The company’s third-generation prototype, Crescent Bay, is markedly better than the last two iterations and is the closest we are to the virtual reality experience, according to tech journalists who took the device for a spin. Unveiled at the Occulus Connect conference, visitors were given a demo of the new headset which is remarkably lighter than its predecessors and, for the first time, comes with integrated audio. LEDs built into the headset’s rear add 360-degree tracking to the device which comes with a higher frame rate and resolution. “This is still incredibly early hardware. There are plenty of technical challenges left to solve for the consumer Rift, but Crescent Bay is truly the best virtual reality headsets we’ve ever built,” the company has said.Q

atar Foundation’s Stars of Science is back with a com-petitive new format which features young 20-something Arabs developing potential products from concept to pro-totype under the mentorship of engineering and design

specialists from across the globe. The ultimate goal is to win a share of the $600,000 (QR2.2 million) prize money, the winner being selected during a live final through public voting and jury deliberation. This season, Stars of Science has also launched a new website that allows fans to enter into technology-relat-ed discussions with the contestants, jury members and other experts.

STARS OF SCIENCE IS BACK ON TV

TWITTER’S TRYST WITH E-COMMERCE

Twitter has started testing its Buy option on a small scale in the United States.

OCCULUS LEAPS CLOSER TO VIRTUAL REALITY

CHINESE E-COMMERCE GIANT GOES PUBLIC ON THE NYSE

Founder and Executive Chairman of Alibaba, Jack Ma, at the NYSE trading floor as the company’s stock goes live

The edutainment reality show, which premiered in September on MBC4, will see 12 new Arab candidates showcasing innovative and technology-driven designs and products.

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business > marketwatch

The new fragrance from Antonio Banderas is the refreshing vision of masculine seduction embodied by the ultimate seducer. It is an elegant and harmonious combination of citric freshness and masculine strength, which opens the door to the ultimate moment of seduction. King of Seduction is a statement of elegant masculinity. The strong, simple lines and thick-cut glass exude quality and strength. The square cap crowns the bottle, the final touch of sophistication.

NEW PERFUME MAKES WAVES

PAUL SMITH PRESENTS A/W 14 BRITISH COLLECTION

Using innovative methods of weaving to

breathe new life into traditional tailoring

cloths, Paul Smith presents the Autumn/

Winter '14 British Collection.

Every season in The British Collection fa-miliar tailoring fabrics are rejuvenated; for Autumn/Winter '14, a monochrome Prince of Wales check is enlarged by

600%, a classic white chalk stripe gradates to give the appearance of falling raindrops and a flower bursts into bloom, with one full repeat engineered across the fabric of the garment. Paul Smith Accessories for autumn/winter 14 also recall an era of bohemian style and youthful energy.

For women, Paul Smith deconstructs sartorial conventions, injecting femininity into tailored outerwear, neatly cut tuxedo

pyjama pants and suit jackets panelled in contrasting cloths.

The dandyish decadence of the late 60s comes through in clashing patterns, with paisley and floral prints appearing together on loungewear and candy stripes running down a louche-belted dressing gown.

Outerwear and suit jackets are elongated in the body, lapel shapes are exaggerated and the silhouette is confident. Formality is broken down and masculine conventions take a feminine twist in relaxed single-but-ton jackets, oversized turn-ups on trousers and waists cinched with belts.

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Buyers of the Lumia 930 will get to enjoy QR1,150 worth of accessories, for free, including the Monster Purity Headset, the Bluetooth Portable Speaker, the

Wireless Charging Plate, the Treasure Tag Junior, and the Universal Portable Char-ger. Those purchasing a Lumia 635 will get QR470 worth of accessories, for free, including the Coloud BOOM Headset, the

Coloud Bang Speakers, the Treasure Tag Junior, and the Universal Portable Charger.

Customers of Vodafone Qatar will also enjoy a 3-month 6GB data package for Pre-paid plans and a 3-month 15 GB package for Postpaid plans, including the accessories, designed to enhance consumer experience, especially following the recent launch of Vodafone 4G.

Vodafone Qatar and Microsoft Devices have announced exclusive Lumia accessory bundle offers in Qatar. People will be able to choose from the recently launched Lumia 930 or Lumia 635 as well a choice of one of the latest accessories to take their experience to a whole new level.

VODAFONE INTRODUCES LUMIA ACCESSORY OFFERS

The features include hand-wound mechanical movement exclusive to Tissot, scratch-resistant, domed sapphire crystal with double antireflective coating, water-resistant up to a pressure of 5 bar (50 metre/165 feet) and black alligator pattern leather strap with folding buckle.

NEW TIMEPIECE FROM TISSOTThe 160-year-old Tissot watch takes pride in its origins and the art of watch making is clearly visible through its dial, thanks to its skeletonised movement.

WONDEROUD is the ultimate incarnation of wood expressed through the most exquisite wood notes. A celebration of OUD, one of nature’s most precious gifts is worth its weight in gold. An aromatic resin, scented with subtle notes, Oud is known as The Black Gold of Perfumers.

Used only for the most precious and mythical concoctions, its powerful and rich character brings a woody, animal, balsamic and even honey feel and texture to a fragrance. The 100% natural Oud is extracted from resinous Aquilaria trees grown sustainably in South East Asia.

WONDEROUD UNLEASHED

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business > marketwatch

In his comments, DOMASCO Managing Director Faisal Sharif said:” This part-nership is a fruition of these efforts. GANT & POLICE are a welcome addition to our portfolio and I am sure that this partnership will add mutual value to both DOMASCO and the brands in Qatar.”Head of Sales for GANT and POLICE watches in the Middle East, Deepak Chainani,

said: “The two international brands are each eminent names in their own leagues. PO-LICE is daring, young and bold while GANT is more classic, sophisticated and sporty.”

He said the company was targeting the age group between 18 and 35 to market these two brands and has identified 150 outlets in the country. "The POLICE and GANT brand watches will be a refreshing sight and offers another angle to fashion lovers,” Sharif said.

“As far as pricing is concerned, the company follows a uniform pricing structure worldwide. However, the only difference would be the local taxes like Value Add-ed Tax. The company also offers a two-year international warranty to customers,” Chainani added.

GANT IS ELEGANT, POLICE IS BOLD

Doha Marketing Services Company (DOMASCO), which is part of the UAE-based Al Futtaim Group, has launched two exquisite looking international brand timepieces – GANT and POLICE – in Qatar.

The classic old-timey exterior is the perfect foil for the X30's state-of-the-art technology. With a 12MP camera and lightning-quick reac-

tions (auto-focus speed – 0.006 seconds; start up time – 0.5 seconds; shutter time lag – 0.01 seconds), the X30 will ensure you capture with perfect clarity the per-fect moments in life. X30’s newly-devel-oped Real Time Viewfinder – which is the largest, fastest and highest-resolv-ing viewfinder in its class – gives users

a true representation of the image, in-cluding exposure previews. The camera is capable of shooting approximately 470 photos on one charge and its wire-less function enables users to seamless-ly transfer images from the computer to a preferred device of their choice. What’s more, the Fujifilm Camera Re-mote application can be used to control the camera and remotely shoot imag-es. X30 will be available in two colour options: black and silver.

RETRO OUTSIDE, MODERN INSIDE

Fujifilm's third generation compact digital camera, the X30, will delight professionals and amateurs alike.

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business > auto news

The improved 7th generation model is the result of three years of research and development conducted by Hyun-dai in the Middle East and around the

globe, in order to maximize product com-petitiveness and satisfy the diverse needs of the Middle East market. It is now on sale across the region.

Unveiled at the Royal Automobile Muse-um of Jordan, the All-New Sonata is expect-ed to continue the popularity of a model that has traditionally been one of Hyund-ai’s best-selling models in the Middle East since it was first introduced. In 2013, the Sonata sold over 26,000 units across the

Middle East – a region that is set to be-come Hyundai’s biggest market after the US. Since its introduction in 1985, cumula-tive global sales of the Sonata have reached almost seven million units.

Tom Lee, Vice President and Head of Hyundai Africa and Middle East Regional Headquarters, said: “The All-New Sonata has been subjected to numerous perfor-mance tests, and has undergone thorough quality checking, both on a global level and on-ground in the Middle East, and we be-lieve that the model represents a significant step forward in all aspects in the mid-size sedan segment."

HYUNDAI LAUNCHES ALL-NEW SONATA IN THE MIDDLE EAST

Hyundai Motor Company has officially launched its All-New Sonata mid-size sedan in the Middle East. The All-New Sonata is the second Hyundai model to feature the brand’s Fluidic Sculpture 2.0 design concept, while also offering modern styling, excellent performance, and the practical application of the company’s latest technologies such as Smart Trunk function and Blind Spot Detection.

The All-New Hyundai Sonata

The All-New Hyundai Sonata Interior

The Infiniti QX70S Elite Sport has just made its appearance in the Middle East. Combining sports-car style and performance with SUV stance and toughness, the QX70S Elite Sport raises the bar with a stunning array of sports styling. “The QX70 continues to bring a new and unprecedented dimension to its class and now the QX70S Elite Sport is building on that, adding even more refined elements to its style, sport and sensation,” said Juergen Schmitz, Managing Director, Infiniti Middle East.

The appealing interior of the QX70S Elite Sport includes black lacquer trim, which is visible on the doors and centre consoles in addition to the seamless purple stitching seen on the sport seats, steering wheel and door trims, which perfectly conveys the look and feel of both luxury and sporty performance. The QX70S Elite Sport seats are equipped with all types of support reaching from the side to the driver’s shoulders to thighs, making it a perfect addition to the in-command feel of a true sporty car. The 3.7-litre V6 petrol engine delivers an extraordinary 329 horsepower and 360 Nm torque, while Intelligent All Wheel Drive ensures cornering is both intuitive and responsive.

INFINITI’S ELITE SPORT ARRIVES

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business > auto news

Nissan recently launched the new X-Trail in the Middle East. Muscular, modern and packed with technology, the new Nissan X-Trail originally made its world debut at the Frankfurt Motor Show. Building upon Nissan’s respected 4x4 heritage and benefiting from the company’s crossover leadership, the new X-Trail redefines the compact SUV segment.

The new X-Trail takes inspiration from Nissan’s market-leading crossovers - Qashqai, Juke and Murano - to create the ultimate, all weather, highly capable, modern family vehicle. Speaking at the occasion, Samir Cherfan, Managing Director at Nissan Middle East, said: “The New X-Trail is just as tough and accomplished as the previous generation model, but adds crossover style and efficiency, exciting design, innovative technology and exceptional comfort to set a new benchmark in the fiercely competitive C-SUV market.” The new compact SUV is available at all Nissan dealerships across the region.

“We are very excited with the introduction of the All-New X-Trail which redefines the category in premiumness, comfort and technology” said Katib Belkhodja, Brand Manager for SUV & Cross-Over at Nissan Middle East. “We are confident that the New X-Trail is equipped to replicate the same success story as Patrol in its category.”

Khalid Al Mannai, Executive Director, Mannai Corporation said, “Since its worldwide introduction in 1992, the flagship Yukon has gone through a

range of evolutionary phases. The 2015 model is the fourth generation in a long line of reliable and rugged SUVs designed to meet the demands of modern life.”

The all-new Yukon sports a completely new design and advanced technology, in-cluding a new family of advanced EcoTec3

engines, expected to deliver the segment’s best V-8 performance and fuel economy. Combined with bold new styling and ad-vanced technologies, it is one of the best all-new family SUVs in the market.

The Yukon lineup incorporates a forward radar system and the segment’s only front seat centre-mounted air bag, engineered to provide additional protection to drivers and front passengers in far-side impact crashes.

YUKON 2015 UNVEILED2015 GMC Yukon, Yukon XL & Yukon Denali have been recently launched in Qatar. The new Yukon has been one of the most anticipated arrivals in Doha, with the first shipment of vehicles already reserved by customers and a waiting list forming subsequent shipments, according to Mannai Auto Group.

X-TRAIL MAKES ITS DEBUT

LAND ROVER’S NEW DISCOVERY SPORT

The first member of the new Discovery family, Discovery Sport, features 5+2 seating in a footprint no larger than ex-isting 5-seat premium SUVs. Discovery

Sport’s progressive new design approach defines the new Discovery family with op-timised volume, proportions and stance. Its design leadership combines with engineer-ing integrity to result in a dynamic profile, the ultimate use of interior space and 5+2 seating configurability.

“Our challenge has been to combine pre-mium design with exceptional versatility; the two attributes must work in harmony,” said Gerry McGovern, Land Rover Design Director and Chief Creative Officer. “I’m proud to say we’ve achieved that; Discov-

ery Sport’s dynamic design will resonate on an emotional level with consumers, and this vehicle is more versatile than any other premium compact SUV on the market.”

This spirit of adventure is reflected in Discovery Sport’s interior, which features high-quality materials and a strong vertical centre console graphic to reflect the pre-mium design of the exterior, while the core Discovery value of versatility is evident everywhere. Discovery Sport will be pro-duced at Land Rover’s award-winning man-ufacturing facility at Halewood, Liverpool. It goes on sale in early 2015 alongside the existing seven-seat Land Rover Discovery in over 170 markets worldwide.

Land Rover has revealed the new Discovery Sport, the world’s most versatile and capable premium compact SUV.

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BMW M IS NOW IN QATARAlfardan Automobiles, the official BMW Group importer in Qatar, has announced the arrival of the latest BMW M models in its showrooms. Set to delight automotive aficionados' passion for high-performance vehicles, the stellar line-up includes the all-new BMW M3 Sedan, BMW M4 Coupé and BMW M4 convertible.

Also joining the M family before the end of this year in celebration of the 30-year anniversary of the BMW M5 is the most powerful variant of the BMW M5

yet: the “30 Years of the M5”. Limited to a production of 300 cars globally, 30 of these powerful vehicles have been allocated for discerning customers in the Middle East.

Commenting on the arrival of the all-new line-up, Mr. Mohammed Kandeel, Chief Operating Officer, Alfardan Group – Au-tomotive Division, said: “BMW M Models

perform extremely well in Qatar stemming from our clients passion and demand for high-performance vehicles. With the ar-rival of the BMW M3, BMW M4 and spe-cial edition BMW M5, M model fans will be able to take motor sport technology from the track to the road. We are confident that these new models will excite our cus-tomers and drive further growth in BMW’s high-performance vehicles here in Qatar.”

The launch of the new BMW M3 Sedan and new BMW M4 Coupe sees BMW M

GmbH revealing a new interpretation of the high-performance sports car – and carrying the BMW M philosophy over into the fifth generation of the M3. More than 40,000 examples of the fourth-generation BMW M3 Coupé were built, and now the BMW M4 Coupé is poised to continue this success story. The “M4” badge is a reference to the model series that provides the basis for the new M model – and, for the first time, the Coupé will be introduced at the same time as the four-door Sedan variant.

Infiniti recently unveiled a concept car named Q80 Inspiration at Parc des Expositions de Versailles in Paris.

CONCEPT CAR UNVEILED

The intent of the low-slung, ingeniously aggressive four-passenger fastback is to demonstrate to the premium world just how Infiniti aims at playing its part.

A flashpoint for the company’s intuitive human-centric style and onboard technological ambition, the Q80 Inspiration long-legged fastback proves that Infiniti intends to drive in and disturb the status quo. More will be revealed on October 2 this year.

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culture > doha diary

Several small and medium Qatari businesses joined forces to put on a two-day sale-cum-exhibition at the Al Jasra Souq Waqif Boutique Hotel. All proceeds from the event, which also included an auction of artworks by Qatari artists, were do-nated to ROTA and will go towards building a school in Gaza. Maqdeem Al Naama,

who is one of the forces behind the event, said at the unveiling, “We want to support local businesses as well as support rebuilding Gaza. We have several fashion and food brands represented here and it’s free for the public to attend.”

Fifteen local businesses in Qatar came together to host an exhibition to support rehabilitation efforts in Gaza.

QATARI SMES COME TOGETHER FOR A CAUSE

Cody Miller of USA and Germany’s Marco Koch lead the field in the Men’s 200m Individual Medley heats at the FINA Mastbank Swimming World Cup 2014 - Doha

Organised in even years, the cham-pionships will draw 1000 athletes from over 160 countries and the world’s fastest swimmers are decid-

ed during a five-day showdown in a 25-me-tre pool. Forty six events (34 individual and 12 relays) are featured on the competition programme. For the first time during the championships, Doha will run a Youth

Programme for 350 young swimmers organised by Qatar Olympic Commit-tee and FINA. With the goal of inspiring and motivating future stars of tomorrow, young swimmers and potential champi-ons from their respective countries will be given the opportunity to experience the World Championships first-hand and gain exposure to major international events.

The city prepares to welcome the athletes competing in the 3rd FINA World Aquatics Convention and the 12th FINA World Swimming Championships between November 29 and December 7.

DOHA TO HOST MEGA SWIMMING CHAMPIONSHIP

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The day began with the airing of the doc-umentary Stronger than Words which showed how the challenges of hearing disability are amplified by the unrest

in Gaza. The heart-wrenching film threw light on some everyday struggles, like a young man expressing dejection about missing out on the Friday sermon as he can’t under-stand what’s being said, a deaf couple taking their sick infant daughter to the doctor, and a mother trying to comfort her young deaf son who is traumatised by the bombings.

There are 10 million deaf people in the Arab world and the need of the hour is to integrate them into the society. CEO of Qatar Charity, Yousef Ahmed Al Kuwari, complimented the film and stressed of the importance of deep-er cooperation among different entities to address the issue. An example of this is the

automatic subtitling software that the Qa-tar Computing Research Institute has been working on, which will soon be implement-ed across Al Jazeera’s Arabic programming. QCRI’s Director of Arabic Content Initiatives, Majd Abbar, who spoke at the event, said that their automatic audio to text conversion soft-ware is accurate to upwards of 85%. “We have currently trained the computer on news in classical Arabic. The challenge is to help the software understand the different Arabic di-alects,” he said. Al Jazeera said it is currently testing the software and hopes to roll it out across its channels from November this year.

Several other discussions on treatments for hearing loss, socio-economic impact of deafness, access to information and services and many other aspects of the issue were carried out through the day.

“I CAN’T HEAR THE SERMON”To commemorate International Week of the Deaf, Al Jazeera Media Network and Qatar Charity came together to organise a day-long discussion on how the deaf in the Arab world cope with their disability, with Gaza as a case study.

The Youth Hub at TYC headquarters was meant to be a welcoming and safe zone for those looking to execute interesting projects – be it in arts, music, business or social development. The concept of the rebranded and newly launched 7ayak Hub remains the same, says Evgenia Berestneva, director of the hub. “We realised that what Qatar

is really missing is the 'meeting place' for all current and future entrepreneurs, startups, freelancers, creatives, community activists or simply proactive individuals, passionate about world-changing ideas,” she says, introducing the co-working space. Anyone can rent out a desk or an office space on a daily, monthly or yearly basis (eg, any one of the 35 hot desks can be yours for QR50/day, while you can rent out a private office for you and yours for QR7,000 a month). Along with space (including for meetings and events) comes inter-net, print, scan, copy services, refreshments, mentoring and networking opportunities.

THE YOUTH COMPANY INAUGURATES 7AYAK HUBThe unique co-working space created at The Youth Company’s premises will offer a chance for people working on interesting projects and businesses to work side by side.

As part of its CSR initiative, Qatar National Bank has launched ‘Money Made Easy’, a guide to understanding the economy for children over nine years.Their “largest financial initiative” to date, QNB’s Money Made Easy has been distributed to 40 independent schools and 16 major private schools across Qatar. Available both in Arabic and English, the book explains the history of money, role of banks, fiscal policy etc through illustrations and case studies.

FINANCE FOR KIDS

QCRI’s Director of Arabic Content Initiatives, MAJD ABBAR; CEO of Qatar Charity, YOUSEF

AHMED AL KUWARI; a sign language intrepreter at the event

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ONE SKETCH AT A TIME

T im Makower is always exploring new dimensions to Doha and indeed any avenue of the world his feet find. “I’ve never been to this part of the city be-

fore,” he smiles, offering an explanation for his delay. He scans the surroundings, capturing a mental image of the venue.

This is precisely how Makower is. He makes sketches of street corners and vistas of cities like Doha. His current exhibition at the Virginia Commonwealth Universi-ty Qatar (VCUQ) showcases 100 sketches created over a number of years of making Qatar his home. Of course, he has traveled back and forth to the UK many times. As a professional architect, he runs Makow-er Architects, a firm specialising in archi-tecture and urbanism, based in Doha and London.

Despite a hectic schedule, Makower longs to sit in solitude for his sketches. He places his sketching tools on the table for a quick glance. These consist of a pen-pen-cil, a thick black crayon, which he calls a "smudgy pencil," used to create shadows, and of course a few pens, as his journal often reflects his thoughts.

He is constantly exploring different as-pects to urban life. Last year, as part of the UK year of culture, his firm participated in a World jigsaw puzzle set up at Harrods London. The project grew out of Makower’s close involvement in the development of Doha and created an interesting collage of the city.

Discussing why he sketches, he says: “It is good to draw, it is a way of seeing. The hand can think, just like the mind. As we pass through our daily lives, we miss so much - so much of beauty, interest and depth. We skate the surface and all too rarely stop to look and listen to what lies beneath.”

Makower’s current projects include a new apartment building in West London, the Al Rayyan Gate masterplan in Doha, and a heritage-led masterplan for Doha’s city centre. “Over the years I have worked on a lot of buildings and masterplans. But essentially I am really interested in people and places,” he says.

He started keeping pocket-sized sketch-books in 2007. “In a way I’ve always drawn. You can call this a mid-life crisis,” he says, seriously. “Though I used to sketch a lot as an architecture student, gradually life took over. I have a bad memory and use sketch-ing as a memory tool. When you create a sketch, the work is somehow embedded in your memory,” he claims.

From a hobby the sketchbooks have now "become a need" says the architect. He adds humbly, “In some cases, the drawings are okay. I could find some which have an un-derlying meaning, but mostly they are just simple drawings.”

The themes in many of the books vary but most of the pages are filled with images of places. Many sketches are completed in Norway, Doha and France. They also show how much the cities have changed over the years. “The city of Doha has undergone a huge transformation,” says the architect, who is vocal about preserving the old while making way for the new.

Makower’s family seems to be made up of artists. His son Noah is an art student in school. Talking about his own obsession Makower says, “They see my sketches as one of my habits. I can be slightly rude, fin-ishing a sketch while the family is finishing lunch.” His wife, Bella, is also an artist.

Sadly two of his journals have been sto-len and one lost, which greatly agitates Ma-kower who treats them as an extension of himself. His book ‘Touching the city" deals with scale and will be out in October. It is being published in the UK and the US and includes some of his drawings.

“Though I love the digital age, there are a few drawbacks. For one, not enough people use their hands to sketch. I hope this exhibi-tion encourages young people in some way,” he muses

100 THOUGHTS

CHAPTER 1 IS ON AT VCUQ GALLERY TILL 16 OCTOBER

BY ABIGAIL MATHIAS

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If you are a kid of 12 years or below, living in Doha for the past couple of months would have been the closest you’d have got to paradise. True to the agenda of

creating a niche for itself as a family des-tination, Doha and its surrounding lo-cales were transformed into an exciting adventure-land of splish-splashy fun, extreme(ish) sports, ice-skating Disney characters and TV shows. There may have been times when you wished you were a kid again, but we bet none of those times could have been as compelling and heart break-ing as when you are standing sadly by the sidelines watching some lucky kid bounce around inside a zorb, wondering if they’d let you have a go and wondering still if you’d even fit into the tunnel-like entrance.

Yes, that happened. Zorbing was just one of the cool activities going down at the Doha Exhibition Centre, where families

thronged, weekdays and weekends alike, for a pleasantly-frenzied distraction. Even as you are making your way towards the en-trance, you’d see, every five minutes or so, a happy and exhausted/hopped-up kid ped-aling out of the entrance on his or her brand new, still-in-the-wrapper tricycle (which was quite clearly selling like hotcakes in-side, over at the shopping section). Once inside, the full force and meaning of Family Fun hits you. The sprawling exhibition floor was blanketed with screaming and excited children, their parents trailing behind them with strollers and bottles of water.

The floor was divided into distinctive zones – summer freeze, extreme adven-ture, kids’, stage, interactive sports, food court and shopping. Why it is called inter-active sports zone, we couldn’t tell, but as we neared it (drawn mostly by the sight of heavily padded young men and women

Qatar Tourism Authority’s Qatar Summer Festival gave the population plenty to cheer about over the two months. Qatar Today brings you some of the highlights.

A SUMMER TO REMEMBER

culture > qt take

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taking laps around the segway circuit), we notice a sign warning us of flying stones. The RC car racing track right next door was quiet then but it must have been quite intense when the races were on if they had to be bystanders worried about getting hit in the face with rocks. The summer freeze zone had a winter wonderland-ish feel with ski slopes, transparent igloos filled with fluffy feathers, ice castles and the like. But perhaps the most exciting activity we saw (yes, more exciting than zorbing) was the circus school. And judging by the long line of kids standing in the enclosure waiting for their turn to trapeze across the room and do a flip-flop into a giant cushion, it was a crowd favourite. We didn’t notice any little clowns but how perfect would it have been if the circus school had a little clown college within? Rock climbing and jungle ropes gave the older kids something adren-aline-filled to do with their time. And the Kids’ zone had plenty playtimes and car-toon screening to keep the youngest ones occupied.

Though entry was free, all the activities inside required payment. However, they were all reasonably priced between QR10 and QR30 for a certain time or number of laps. For a couple of hours and a QR150 budget per kid, you could have easily turned your children into obedient little slaves for the summer on the promise of another family fun time in the near future. All zones were manned by a large number of staff, en-suring personal attention and safety. Out-side the exhibition floor, Bedaya Centre had brought together some of the retailers they support for a small shopping section that featured elaborate wood works, stationery, fashion accessories and more. As we exited the venue, a large sign directed us to other locations around the city where we could

enjoy the Qatar Summer Festival. The inflatable aqua park that had sprung

up at Al Wakrah beach was one. Water slides, beach games, splash pools and more helped many a family cool off this summer. For the older but still young at heart adven-turers, activities like snorkeling in Qatar’s Fringing Coral Reef, scenic flights, kaya-king, stand-up paddle boarding, etc were arranged near the Al Khor Mall. And all the fun was not reserved for the outdoorsy types (though they did get the lion’s share of it); mall birds had much to celebrate as well. All the big malls had plenty of summer offers, raffle draws and spectacular prizes like Audi cars as giveaways. And QTA took a page out of Dubai Mall’s awesome musical fountains with the one they put up in the Corniche near the Al Mourjan restaurant. Set to classical symphonies, the jets of co-lour-drenched water shot up 50 metres into the sky, wowing the gathered crowd. Every evening at regular intervals, the fountains

were definitely worth the nightmarish traffic situation you had to suffer through before you got there.

The Festival wrapped up with the coup de grace - Disney On Ice. The new Rockin’ Ever After show, which ran at Qatar National Convention Centre between September 24 and 27, not only featured the classic staple of Mickey Mouse, Minnie Mouse, Donald Duck and Goofy but also brought to life (on ice) the stories of The Little Mermaid, Beauty and the Beast, Tangled and, for the first time, Brave. Like we said before, there was no better time to be a kid than in Doha in the summer of 2014

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NEW BEGINNINGS

FRANCISCO SA TEIXEIRA

Sales Executive, Kempinski Residences & Suites Been in Doha since: January 2014 (nine months)

MY HOME IN QATAR KÉYALI MAYAGA

Singer, various venuesBeen in Doha since: 2008 (six years)

Then and nowAs a singer I am starting to love the variety of new events and opportunities we now have to perform. There seems to be a genuine pull towards artistry that’s really amazing. What I’m less enjoying is the crazy traffic and the feeling that ‘back in the day’, people took more time to connect beyond the odd night out, which was nice. My best memories involve the city, the people I met and friends I made here. When I leave, I’ll miss the ease of travelling around and meeting people of so many different backgrounds.

Life in DohaI feel like I grew up here; I was rather young when

I first came to Doha and my first professional experience was crafted here too. I am probably a bit spoiled because of how different life is here to other places; it’s like a golden cage where you can easily lose track of reality.

Passing on the wisdomFrancisco (below) wanted to ask Kéyali how she thinks Qatar will be doing in 40 years.I think they’re gearing towards a more Dubai kind of feeling with a lot of people, towers everywhere and everything ‘bigger’ – it would be nice if they were able to align modernising all the while staying connected with the local cultural bits.

Qatar Today looks at two expatriates from everyday life, one who has lived here for a significant

amount of time and another who has just made Doha his home, for

their take on life in this city.

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The opportunity to help, grow and learn with a top hotel chain was what attracted me to Doha.

I also wanted to accept the challenge of working among a diverse group of peoples. We have more

than 30 nationalities working hands-on towards the same goals in the hotel and this is a great experience to have. During the leisure hours I

find myself hanging out at the hotel, West Bay, the beach or my friends’ houses. Being from

Portugal, I especially miss walking outside in a forest or garden, having a drink al fresco and, of

course, certain water sports. It’s a pity that Qatar has no waves for me to practice surfing and

body-boarding more often.

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