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ISSUE 1 FEBRU

ARY 2012

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make an impression pitch to clients communication skills

secure mobile devices safeguard food supply know your trade market

The ABC of entrepreneurship

- The makings of an entrepreneur- How to develop a business idea

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News10 UPDATESWe bring you a snapshot of the latest events and happenings in Qatar that will have an impact on SMEs and large enterprises.

Entrepreneurs24 I THINK, THEREFORE I AMAre entrepreneurs born or bred? Ian White, Director, Qatar Skills Academy discusses what really makes an entrepreneur.

22 ProductsWe take a look at new products and software launched to make your work life easier. It’s not like you need an excuse!

Shelf Life

Report14 ECONOMIC INSIGHTWe take a look at some of the monetary indicators in Qatar based on reports provided by QNB.

26 WHAT’S ON YOUR MINDEvery successful business or product starts with an idea. Bedaya Center talks about the importance of developing a sound idea and how to go about it.

Business Setup

28 RULES OF THE GAMEEmma Higham, Senior Associate, Clyde & Co, gives us an overview of the rules and regulations that foreign investors should be familiar with as they prepare to do business in Qatar.

Legal

Expert Opinon16 SPRING OF HOPEHedi Larbi, Director, International Development Institution gives us his viewpoint on what will be the economic impact of the Arab Spring on the region in 2012.

Business Guru36 RECRUIT YOUR WAY TO SUCCESSWe talk to Rabea Ataya, CEO, Bayt.com, to know about the Internet-based recruitment company’s best practices.

Spring of Hope

16

contentsIssue 1 February 2012

34 KNOW YOUR DESTINATION Before you get ready to export to a particular market, Tasdeer advises on how to ensure if there is a right fit between your product and the market it is meant for.

Trade32 ENSURING FOOD SECURITY

Dr. Ashraf Mahate, international trade and business expert, talks to us about how to deal with food supply shortage, which is becoming a serious concern in the Gulf region.

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Technology52 PROTECTING YOUR MOBILE DEVICESAndy Cordial, Managing Director, Origin Storage, explains why mobile computing users need to raise their security game if they are to avoid a series of SmartPhone and tablet computer-driven data breaches hitting the headlines.

48 PLAYING TWO STEPS AHEAD With the advent of digital media, the rules for advertising have completely changed. Therefore, businesses must adapt so that they can continue to provide value and remain relevant, says Abbas Alidina, Founder and Director of Logicks.com.

Marketing

Sales40 THE GOOD, THE BAD AND THE UGLYIn this competitive world, organisations are busy trying to secure deals. But in doing so, some are committing cardinal sales sins, says Jennifer Baxavanis, Managing Partner, BAX Consulting.

Corporate Lifestyle54 SEAL THE DEALYou have just a few seconds to make that first impression and you get only one shot at it. This month, Guillaume Mariole from Ignite Fitness & Wellness shows that, with a little thought and preparation, you can make some smart choices.

Management44 THE IMPORTANCE OF BEING FLEXIBLEStephan Melchior, Managing Partner, Wilson Learning Middle East, shares some pointers on the ability to see different perspectives and adapt.

As a New Year ushers in, it brings with it hope, optimism and an eagerness for new things to come. From the lone young man in Tunisia to the occupy Wall Street movement, 2011 was a year of turmoil and change. But now with a new year, we look forward to a new beginning and positive tidings of good things to come.

The Middle East has been through a tumultuous time, and therefore it becomes all the more important to focus on the positives. As the region continues to simmer with some signs of change, it is

countries like Qatar, with their robust economic growth and long-term strategy of making the country a safe place to work, live and flourish that become our beacon of hope. From winning the Summer Olympics 2020 to 2022 FIFA World Cup, combined with its aggressive investment to make the country the largest producer of gas in the world, the Al Thani family has made sure a strong foundation has been set to achieve their vision. Qatar today stands as the main player in the region, able to influence the GCC and beyond.

With foreign investment on the rise, the presence of multinationals in all sectors of the economy and a growing student population, we could not find a better time to bring in Private Sector Qatar in English, to ensure that all these developments and success stories do not go unnoticed. With this first issue, we find ourselves in unchartered territory. A platform to educate, inform and make aware not only the existing private sector enterprise but also the flood of investors looking for their next big break. With so much going on, Qatar is definitely the place for entrepreneurs and businesses that are up for exploring opportunities.

And we want to be there, when you make that journey. We want the magazine to be an inclusive forum and for you to talk to us, share your ideas, guide us. We are in the midst of lining up professionals who will contribute regularly on various issues – right from setting up a company to upcoming trends, entrepreneurs who will share their experiences and international experts, who will give their take with a global perspective. And we want the world to know what is happening in Qatar.

The first issue of the magazine provides insight into an interesting mix of topics, ranging from the impact of the Arab Spring on the region, to how to build a concrete business idea, defining an entrepreneur and an overview of doing business in Qatar. You can find all this and a lot more on our Website and Facebook page. And to interact with us, follow us on our various social media channels.

As we begin this journey in 2012 to make Private Sector Qatar a must-read platform for every business and to provide support to SMEs, we are motivated to make a difference. We hope you will be a part of this journey and guide and encourage us along the way.

editorial

Drum roll please!

Aparna Shivpuri Arya, Editor (English), Private Sector Qatar

Talk to us:E-mail: [email protected] Twitter: @PrivateSectorQA Facebook: www.facebook.com/PrivateSectorQatarLinkedIn group: Private Sector Qatar

PublisherDominic De Sousa

Group COONadeem Hood

Managing DirectorRichard Judd

[email protected] +971 4 440 9126

EDITORIAL

Group Editor, CPI BusinessKetaki Banga


Editor - EnglishAparna Shivpuri Arya

[email protected] +971 440 9133

Editor - ArabicAli Koaik


Contributing EditorsMike Byrne


Meghna [email protected] +971 440 9130

ADVERTISING

Commercial DirectorChris Stevenson


Sales DirectorFrancis Morgan


CIRCULATION

Database and Circulation ManagerRajeesh M


PRODUCTION AND DESIGN

Production ManagerJames P Tharian


Art DirectorKamil Roxas


Head of DesignFahed Sabbagh


PhotographerCris Mejorada


DIGITAL SERVICESwww.smeadvisor.com

Digital Services ManagerTristan Troy Maagma

Web DevelopersJerus King Bation

Erik BrionesJefferson de Joya

Louie Alma


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Printed byAtlas Printing Press LLC

© Copyright 2012 CPIAll rights reserved

While the publishers have made every effort to ensure the accuracy of all information in this

magazine, they will not be held responsible for any errors therein.

QDB BriDgeD the gap to starting my own Business through aL Dhameen.

Do you have a promising business or new business idea? But do you also have trouble finding the funding that you need? Ask us about Al Dhameen Indirect Lending Program from QDB. We will guarantee up to 85% of your business loan*, leaving you free to focus on developing your business. Click on www.qdb.qa or visit one of our partners listed below.

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For more information, please visit www.privatesectorqatar.com/en

Dr. Hessa Al Jaber

Dr. Jaber is the Secretary General of ictQATAR. Prior to this, she was a member of the Strategic ICT Committee, responsible for shaping Qatar's national ICT strategy. She holds a Bachelor of Science (Engineering) from Kuwait University and Master's Degree and PhD in Computer Science from George Washington

University, Washington, DC.

Mr. Abdulaziz N. Al-Khalifa

Mr. Al-Khalifa is the Executive Director, Strategic Planning and Control at Qatar Development Bank (QDB). He has over ten years of experience in the banking, oil and gas and the private services sectors working for the QDB, Shell and Qatar General Electricity and Water Corporation respectively. Mr. Abdulaziz holds an MBA degree from

Qatar University and a bachelor degree in Engineering from California University, USA.

Raed Al-Emadi

Mr. Al-Emadi is Deputy CEO, Silatech. Prior to joining Silatech, he has worked for the Barwa Real Estate Group and Qatar Foundation. He holds a BSc in Mechanical Engineering from McNeese State University.

Bassam Salman

Mr. Salman is Executive Assistant, Qatar Chamber of Commerce & Industry. He has graduated from Faculty of Arts – English literature in 1998. He also studied Business Administration at the American University in Cairo, 1999.

Ms. Amal Al-Mannai

Ms. Al-Mannai is the Executive Director of the Social Development Center (SDC). She is also the Vice Chairperson of AFIF Fund for Small and Medium enterprises and a member of the National Human Rights Committee. Ms. Al-Mannai holds an MBA degree from the College of Business Administration at the American University of Beirut (AUB). She also holds a BSc in Economics from The University of Qatar and an MSc in Public Policy and Management from London University.

Dr. Eulian Roberts

Dr. Roberts is the Managing Director of Qatar Science & Technology Park. His sector experience includes biotechnology, environmental technology, energy, healthcare, software and telecommunications. Eulian graduated from Imperial College with a BSc and PhD in 1986, and obtained an MBA three years later.

adviSORy BOaRd

8 february 2012

adviSORy BOaRd

news

Space camp programme by Boeing

A senior aviation security inspector from Qatar attended Boeing Educators to Space Camp programme held in Huntsville, Alabama in the United States. Captain Mohammed Al Khater was part of a group of more than 90 delegates and students from 11 countries taking part in a weeklong training adventure.

“The programme was very beneficial, and proved to be creative and innovative in teaching us techniques that we were able to implement with our teams upon returning home. This is an excellent initiative from Boeing, and I am very excited to have been part of it,” said Captain Mohammed.

This year’s group of participants represented 11 countries, 16 American States, and the District of Columbia. Since 1992, more than 800 teachers have participated in Boeing’s annual programme, designed to help them motivate their students in the subjects of science, technology, engineering, and math (STEM), which is estimated to have reached more than 400,000 students around the world.

The Boeing Educators to Space Camp programme uses information on current space

exploration initiatives to enhance teaching skills in presenting STEM lessons in a way that will inspire students and help ensure a skilled workforce for a globally competitive technology market. The group participated in activities such as simulated space missions, astronaut training, and lectures by rocketry and space exploration experts.

“Boeing is an active advocate of educational advancement and has a long-term commitment to community development in the Middle East.” said Jeffrey Johnson, President of Boeing Middle East. “By offering students and educators a chance to take part in the Space Camp programme, we are focusing on elevating the quality of education in the region, so that students can excel in a competitive global market.”

After graduating from Space Camp, each delegate returns home with a lesson-plan workbook and materials to use in the classroom or work environment. The graduates also have access to online training as well as resources to help them continue to network and communicate with their fellow camp attendees.

Space camp team

Promoting educationQatar National Bank (QNB)

announced the launch of its Education Plan campaign as part of its corporate social responsibility policy.

A good education and a degree from a respected university are the key to unlocking many doors of opportunity for children. This investment plan is designed to help people save the cost of higher education by guaranteeing the growth of their contributions over the years.

This product offers customers who have children with a savings and protection plan that helps for the future education of their children. It will give customers a sense of security and achievement knowing that their children’s education will go as planned even if everything else doesn’t.

With a flexible savings structure, it will ensure the family’s financial independence in the event of unexpected permanent total disability or death of the policy owner.

The minimum accumulation phase is five years and the maximum is 21 years. Customers can also continue to pay into the account from any country they move to.

In order to enrol in the programme customers should contact the QNB customer care centre to schedule an appointment, following which a customer care officer will visit them to create a package that suits their needs.

QNB has always been keen on providing its community with best products and solutions to their financial needs and this programme is one of the most attractive products of its kind in the country.

10 february 2012

news

Deal signed between Qatargas and Laffan RefineryQatargas signed Engineering, Procurement and Construction (EPC) contract with Samsung Engineering Ltd., for a Diesel Hydrotreater (DHT) Unit that will treat 54,000 barrels per stream day (BPSD) of diesel, from high-sulphur into ultra low-sulphur diesel fuel, at the Laffan Refinery. The Laffan Refinery, which started production in September 2009 and is operated by Qatargas, is one of the largest condensate refineries in the world and the first of its kind in Qatar.

The contract was formally signed by His Excellency Dr. Mohammed Bin Saleh Al-Sada, Minister of Energy and Industry and Chairman of the Qatargas and Laffan Refinery Boards

of Directors, and Mr. Park Ki-Seok, President and Chief Executive Officer of Samsung Engineering Ltd. Also present on the occasion were Khalid Bin Khalifa Al Thani, Chief Executive Officer of Qatargas and Vice Chairman & Chief Executive Officer of Laffan Refinery Company, Qatar Petroleum Board members, senior officials of Qatargas, top management from Samsung Engineering Ltd., and representatives of the Laffan Refinery shareholders.

Commenting on this major project, His Excellency Dr. Mohammed Bin Saleh Al-Sada said, “This project forms part of Qatar’s National Vision, as laid down by His Highness the Emir Sheikh Hamad Bin Khalifa

Al-Thani, for securing efficient energy supplies for the country meeting the most stringent environmental specifications, and contributing towards clean global energy security. The surplus production will be exported, making it the latest addition to the State of Qatar’s existing export portfolio in the energy sector. The planned startup of this project is the first quarter of 2014 at a cost of around QR 350 million.”

Khalid Bin Khalifa Al Thani said, “This is a very significant milestone for our Laffan Refinery, which is already undergoing an ambitious expansion drive to double its capacity of 146,000 BPSD. I’m particularly pleased about this collaboration

with Samsung Engineering for the development of this Diesel Hydrotreater Unit as it represents one of the many ways through which we continue to demonstrate our highest standard of environmental management.”

The Laffan Refinery, with its processing capacity of 146,000 BPSD, represents a significant achievement by the State of Qatar in the field of optimising condensate production. Engineering work is currently being undertaken for a second condensate Laffan Refinery (LR2), which will have the same capacity and will be constructed on an adjacent plot. The DHT Unit is designed to process the LGO straight run from both refineries.

Fly awayThe unique Fifth Fly-in Open Day at Al Khor was completely reshaped for January 2012 into an annual, crowd-pulling attraction featuring an airshow and aircraft from all over the region.

Al Khor Fly-in Day is part of Qatar’s history and is being relaunched as an event set to draw big crowds with displays of aircraft and aerobatic shows thrilling the whole family.

Jointly organised by aircraft

owners, Qatar Civil Aviation and Al Khor Airport, the 2012 Fifth Fly-in Open Day took place at Al Khor airport over two days, January 13th and 14th. The first day of the event witnessed the main attraction for the public.

Aircraft owners from Qatar and overseas flew into Al Khor to show off their machines and raise awareness about aviation among Qataris, in what was an exciting and educational event. It was a great opportunity for those with a love of aviation to immerse themselves in a

fantastic and original experience by taking a closer look at a diverse range of aircraft from jets, to propeller aircraft, to microcopters and many others.

Qatar Aeronautical College was representeded at the event for those willing to learn more about scholarships and a career in aviation.

11february 2012

news

Business solutions for managing dataQtel Business Solutions

(QBS) launched an innovative new network solution that that will allow customers with high bandwidth requirements to aggregate applications on one dedicated, highly secure optical network.

The new WaveLink service is aimed at Qatar’s fast-growing large corporate and Government entities looking to manage higher volumes of data and information. The solution offers failure-resistant architecture and the ability to carry traffic,

regardless of protocol or bandwidth requirements.

With companies in Qatar continuing to set new records for growth and development, business customers are increasingly looking for innovative solutions to help them stay on top of their daily data needs.

WaveLink’s supporting applications range from basic voice and data services to virtualisation and storage area network applications, allowing customers to manage traffic over one network.

The new service also provides a powerful established backbone with the flexibility of client-specific tailored protocols and set protection levels to suit individual companies. This is all done in a cost-effective way by using leased capacity that demands no capital investment.

WaveLink is based on Wavelength Division Multiplexing technology and are used primarily for high bandwidth requirements such as data warehousing, Storage Area

Networking (SAN) and applications.

It uniquely supports multiple deliveries of different interfaces as the service is transparent to what technology each wavelength provides. It can be used to supply Synchronous Digital Hierarchy (SDH), Ethernet, or other protocols such as Fibre Connection (FICON) or Enterprise Systems Connection (ESCON). WaveLink based access can meet resilience requirements between sites such as data centres and head offices.

Save the date! FEBRuaRy 2012date Event Location

4-5 february everything mobile forum sharq village and spa

5-8 february Qatar projects (construction) grand hyatt hotel

6-8 february power-gen middle east 2012 (energy and power) Qatar national convention center

7-8 february 3rd annual middle east ppp millenium hotel

8-11 february doha food festival doha exhibition center

21-27 february doha 9th Jewellery and watch exhibition doha exhibition center

22-23 february 3rd annual concepts middle east (business) renaissance doha

27-28 february fire safety and rescue-Qatar tba

27-1 march Qatar international conference on stem cell science and policy Qatar national convention centre

12 february 2012

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reports

LET’S TaLk MONEy!In the first of a multi-part series, we take a look at some of the

monetary issues in Qatar, based on economic reports provided by

the Qatar National Bank (QNB).

Currency The Qatari riyal (QR) has been pegged to the

US dollar at a rate of QR3.64:USD1 since

1981. This limits the monetary policy tools

at the disposal of the Qatar Central Bank

(QCB). The other GCC currencies, aside from

the Kuwaiti dinar, also have long-standing

pegs to the dollar.

It is unlikely that the currency will be

de-pegged or re-valued in the near

future. The peg minimises the volatility

of hydrocarbons export revenue, as oil

and gas are priced in dollars. For foreign

investors, the long-term stability of the peg

removes some of the capital value risks that

are usually associated with investment in

countries with floating exchange rates.

The dollar itself has been volatile in recent

years, but even this has not prompted any

moves towards changing the peg in Qatar or

other GCC countries.

The peg could be adjusted in preparation

for the launch of a GCC Monetary Union.

There are plans for a single currency

including Saudi Arabia, Bahrain, Kuwait

and Qatar (the UAE and Oman have

withdrawn). A joint GCC Monetary Council

was established in Riyadh in 2010 as the first

step towards monetary union.

It is likely that a GCC currency would

initially be pegged to the US dollar, with

the Qatari riyal being converted to the new

currency at this fixed rate. The peg might

later be changed to a basket of currencies

that better reflect the trade relationships of

the GCC, along the lines of Kuwait’s existing

currency regime.

A less likely scenario would be an

adjustment to level of the riyal’s peg to

help stave off imported inflation. In 2008,

Consumer Price Index (CPI) inflation spiked

to 15%. Some analysts argued that an

upward revaluation would help to slow

inflation by lowering import costs. However,

it would probably require a prolonged

depreciation of the US dollar and significant

imported inflation, for Qatar to seriously

consider adjusting its exchange rate and

undermining the stability the long-term

peg has created. Such a scenario is highly

14 february 2012

reports

unlikely in the short to medium term as the

US dollar remains essential to the global

financial system.

Given that the Federal Reserve rates

are effectively on hold until 2013, QNB

Capital does not expect any increase in

Qatari interest rates until then. Further rate

cuts may be made if credit growth remains

sluggish. Qatar is unlikely to raise rates until

2013, taking its lead from the US Federal

Reserve. The US dollar peg requires Qatar’s

interest rates to broadly track US rates to

deter major speculative capital flows seeking

to arbitrage any interest-rate differential.

Interbank lending rates are closely related to

official base rates.

Monetary policy toolsThe QCB mainly uses bank reserve

requirements and lending limits as monetary

policy tools.

• Commercial banks are required to hold

4.75% of total deposits, including foreign

deposits, as cash reserves

• The loan-to-deposit ratio of commercial

banks is 90%

Foreign currency deposits have declined

significantly. There has also been a long-

term trend for an increase in the proportion

of deposits held in Qatari riyal. Foreign

currencies, which were 34% of the total

in January 2007, declined to 22% as at

June 2011. This has most probably been a

consequence of the financial crisis and global

recession, which has encouraged Qataris to

withdraw their savings from foreign currencies

that may have been perceived as at risk.

The proportion of demand deposits has

also fallen from 28% in January 2007 to

23% in June 2011, indicating that there is

an increased propensity for Qataris to save.

Prices and wagesHistorically, inflation in Qatar has been

extremely low. The Consumer Price Index

grew at 3.0% during 1995-2004. It picked

up considerably to 12% in the 2005-08 oil

boom, although there was a contraction in

prices during the global slowdown in 2009-10

of 3.7% a year

An expansive economy, public spending

and housing have driven inflation. Inflation

has been driven higher by the economic

boom, high oil prices and strong government

spending, all of which have increased domestic

demand. Qatar is also heavily dependent

on imports of food and other goods and is

therefore affected by imported inflation as

international commodity prices rise.

Rent prices have driven the increase and

subsequent contraction in the CPI. Rent, fuel

and energy have the strongest weighting in

Qatar’s CPI basket, accounting for 32% of

the index. This component also grew faster

than all of the other categories in 2005-08,

at a rate of 25%. During Qatar’s economic

boom, rental prices rose rapidly.

According to a survey by DTZ, a

UK-based real estate research

company, prime office rental

rates in the diplomatic

quarter of Doha increased

by 67% from USD 49

per square metre per

month in the first

half of 2006 to a

peak of USD 82 in

the first half of

2008. Residential

compound

villa rents also

increased, rising

by 35% from USD

4,900 per month

for a four bed villa in the first half of 2006

to USD 6,600 in the first half of 2008.

These factors were largely responsible for

the CPI inflation of 14%

in 2005-08.

Rent was also the key driver for the

contraction in the CPI in 2009-10, falling

at a rate of 12% a year. According to the

DTZ research, prime office rental rates

fell by 13% from the first half of 2008 to

USD 71 in the second half of 2010 and

compound villas fell 38% to USD 4,100

over the same period.

Source: QSA, *QNB Capital forecasts in 2011-12

-4.92012*

2.8

2006 2010

10

2002 2008

20

2.4

15.1

20040

-10Source: QSA, *QNB Capital forecasts in 2011-2012

Consumer price index (CPI) 2000-2012

Figure 1

15february 2012

reports

The second most highly weighted

category in the CPI is transport and

communications, representing 21% of the

overall index. Prices changes in this category

have been more moderate, only rising at a

rate of 4.3% in 2005-08 and contracting at

a rate of 1% in 2009-10.

The food, beverages and tobacco

component of CPI was also an important

factor driving inflation. QNB Capital expects

rising prices in the food, beverages and

tobacco and transport and communications

categories to more than counteract the

falling prices in the rent, fuel and energy

category. During the first six months of

2011, prices in the food, beverages and

tobacco category rose again, at an annual

average rate of 4.8% in line with fresh

increases in international food prices

because of poor harvests.

Producer Price Index (PPI)The PPI is closely related to oil prices. The highest

weight in the PPI basket is given to mining,

which accounts for 77% of the index

(Figure 2). Within this, crude oil prices

account for 50%, natural gas for 32% and

condensates 18%. Inflation in this category

has been 29% from the first quarter of

2010 to the first quarter of 2011. As

natural gas and condensate prices are often

linked to oil prices, this category will be

closely correlated with QNB Capital’s oil

price forecast, rising by around 35% in

2011 and falling by around 4.8% in 2012.

ManufacturingManufacturing is the next most heavily

weighted category, representing 21% of

the index. Inflation has risen by 14% in

this category from the first quarter of 2010

to the first quarter of 2011, which has

mainly been driven by an 18% increase in

the price of refined petroleum products

and a 11% increase in the price of basic

chemicals, used in the petrochemical

industry. As the inputs for petroleum

products and petrochemicals are oil and

gas based, this category is also closely

correlated with oil prices.

Mining

24.9%28.6%

Overall index

15

25

20

Electricity and water

10

Manufacturing

0.1%

30

0

13.9%5

(100%)

(2%)

(77%)

(21%)

Source: QSA and QNB Capital analysis

Figure 2

Sector Average Annual

Salary (USD) Mining and Quarrying 55,279 Public Administration 50,093 Electricity, gas and water supply

49,098

Financial intermediation

49,055

Source: QSA

and QNB Capital analysis

The remaining 2% of the index is made

up of electricity and water. Prices in this

category are fixed by the government, and

are therefore likely to remain relatively stable.

They fell marginally by 0.1% from the first

quarter of 2010 to the first quarter of 2011.

WagesBased on labour surveys conducted

by the Qatar Statistics Authority

QSA, average wages have increased

from USD 17,200 per year in 2006 to USD

25,700 in 2009. This equates to an annual

increase of around 14% and is broadly in line

with CPI. In September 2011 the government

announced a 60% increase in salaries of

military officers and a 50% rise in the salaries

of military personnel of other ranks.

Producer Price Index (Q1 2010-Q1 2011)Percent change, index weighting in brackets

Top paid sectors in Qatar

16 february 2012

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What does the New Year hold for the Arab World? More political

changes and economic challenges, but also optimism and faith,

says Hedi Larbi, Director, Middle East Department, International

Development Institution.

SpRiNG OF hOpE

expert opinion

In 2011 the Arab world witnessed a tsunami change. Let us look back at the last 12 months and

try to preview what 2012 holds for our region.

Political situation It is too early to draw some lessons as the

political transformation is still unfolding

both within and across countries. Political

transition has just started in few countries

(Tunisia, Egypt and to a less extent Libya). At

the same time, revolution is still ongoing in

other countries (Yemen, Syria).

Arab people, where ever they are, have

rapidly developed a deep sense of citizenship

and strong determination to defend their

rights and freedom. Because of its potential

to shape up the new political system in the

region, it is worth exploring the prospect

of religion in the region and try to assess

the challenges it may face going forward.

Along with economic issues, and counter

revolution attempts, the turmoil raises

serious questions and legitimate concerns by

the people of the region and many partners

of the Arab world.

Objective analysis of the prevalent

economic and social situation in these

countries, and extensive discussions with

constituencies and popular base of the

political parties can help shed some light. For

the majority of the people, the future of any

political ideology will depend on how much

those who are elected will deliver on both the

political and economic demands of the people.

Economic situation2011 was a tough economic year for

revolutionary and evolutionary countries.

Growth was flat or negative in Tunisia, Egypt,

Yemen, Libya and Syria. It was sluggish in

Morocco and Jordan. Unemployment, the

central reason of the Arab Spring, soared

especially in Tunisia and Egypt. Tourism

income took a plunge with little sign of

recovery (-35% in Egypt, -45% in Tunisia

and even worse in Syria). Foreign Direct

investment (FDI) has more than halved.

18 february 2012

expert opinion

Domestic investors were willing to

engage but were restrained by political

uncertainty, social unrest and volatile

security. Trade, though resilient in the

first half of the year, declined thereafter.

External accounts deteriorated. Foreign

reserves declined, though for policy purpose,

they still seem to be at reasonable levels

but not for a long time. And most of all,

available fiscal space at the beginning of the

revolution was depleted, and fiscal deficits

start soaring again (around 5% in Tunisia

and Morocco, 8 to 10% in Egypt, Jordan,

Yemen).

The prospects in 2012 remain very

challenging if not worse than 2011. In

addition to the huge pile of inherited

political and economic problems, and those

developed in 2011, the region will not

be able to avoid the severe impact of the

persistent global crisis, especially in Europe.

Indeed, even under the best of assumptions,

Europe is likely to see a shallow recession

which will take many years to resolve and

growth to recover. This will definitely affect

the economies of the region for few years

to come, especially North African countries,

through the usual channels of trade,

investments, tourism and remittances.

In the absence of external financial

support (which doesn’t seem to be

forthcoming in spite of the repeated

promises of the G8), the combination of

the euro crisis and the persistent social

unrest and risk factors perceived by the

private sector, will further compound an

already challenging economic situation of

countries in the middle of difficult political

transition. Therefore economic recovery in

most countries, especially Tunisia, Egypt,

Morocco and Jordan will be delayed. Once

again, exports, tourism income, remittances,

and investment could be hard hit. The fiscal

space will further shrink in a context of

rising borrowing costs. This will seriously

limit the capacity of the countries to deploy

appropriate fiscal measures to stimulate

growth and preempt economic recession at

this very sensitive juncture.

“I am afraid, the unbearable high levels

of unemployment is posed to further

aggravate. On another front, it seems to

be clear that there is an issue of credible

leadership with enough policy experience

to assure private sector and who is able to

stand up to popular demands and mobilise

public and private sector capabilities to

immediately start the implementation of a

well designed development programme,”

says Hedi.

Objective analysis of the prevalent economic and social situation in these countries, and extensive discussions with constituencies and popular base of the political parties can help shed some light. For the majority of the people, the future of any political ideology will depend on how much those who are elected will deliver on both the political and economic demands of the people.

We can debate the impact of the 2011 Arab Spring forever and under or overestimate the depth of its political transformation, but what happened in 2011 will have profound consequences for the future of the region, and beyond.

19february 2012

Hedi Larbi

What lies aheadTwo brief conclusions can be inferred

from the above. Democracy will likely

be an important moderating factor over

time. But Arab people will also discover

that they need to find a viable alternative

that can address their economic and

political woes. Therefore, these first free

elections in the region are not the end of

the transformation process, but only the

beginning. If so, we should expect future

elections to bring stability back to its real

weight.

After all, there should be a learning period

during which, each country will develop its

own culture, model and practice of democracy.

It is too early to judge the ongoing

political transformation process or to predict

its final outcome. However, the observations

made above and what has been achieved

so far lead to think that the journey will be

very difficult but it seems to have well begun.

Indeed, some positive signs are worth noting.

Post-revolution countries are well

engaged in their democratic transition. New

and solid political awareness is developing

and has been reflected in free and fair

elections in Tunisia, Egypt and Morocco.

expert opinion

There is the foundation of numerous political

parties. Tunisia, where all this started,

is offering a home-made blue print for

managing a democratic transition process,

which could inspire other Arab countries.

People in Egypt, in spite of tremendous

difficulties posed by the military and other

counter revolutionary forces, continue to

defend their attachment to freedom and

democratic values.

Hedi Larbi works for an international inter-governmental organisation. He is an expert on international economic and political issues.Hedi received his Baccalaureat in Mathematics from Bizerte College in Tunisia; a Master’s Degree in Civil Engineering and Management from Ecole des Mines de Paris, France; and an Executive MBA from Harvard Business School, USA.

About

democracies, they will exert a tremendous

influence on the internal politics of the

region, by demonstrating successful

alternative models to the autocracies and

theocracies that have previously been the

only choices on offer.

Also, there are lessons to be learned

from a country like Qatar that has

maintained peace amongst all this turmoil

by offering transparent leadership and

promoting socio-economic issues, such as

employment, education and health.

We can debate the impact of the

2011 Arab Spring forever and under or

overestimate the depth of its political

transformation, but what happened in 2011

will have profound consequences for the

future of the region, and beyond.

The Middle East and North Africa will

never be the same. The forces that have

been unleashed are likely to continue

driving regional politics for decades to

come. The ongoing changes will also

fundamentally alter the geopolitical map of

the Middle East.

Tunisia, where all this started, is offering a home-made blue print for managing a democratic transition process, which could inspire other Arab countries.

Ultimately, Egypt will complete this first

stage of transition and could offer another

model. Libya, due to the lack of political

and state institutions, will go through

ups and downs, but will find its way

with or without the help of its neighbor.

Morocco offers a reasonable example of

evolutionary reform which could inspire

other monarchies of the region. If these

countries eventually emerge as stable

20 february 2012

ICONIC LANDMARK HOTEL OPEN NOW

AL WAAB STREET, DOHA, QATAR TEL: (+974) 44465600 WWW.THETORCHDOHA.COM

shelf life

Cisco announced the launch of Cisco Connect Express, a mobile app that brings Cisco Connect software features to mobile devices. Cisco Connect Express is compatible with Linksys E-Series routers and X-Series modem routers and helps consumers control the basic functionalities of their wireless network.

With the app, consumers can use their phone or tablet now to add devices to the wireless network, manage guest access, and change their Wi-Fi settings. The Cisco Connect

Express mobile app has been designed for iOS or Android devices and can be downloaded at no cost from the iTunes App Store and Android Market.

Cisco will continue to include the Cisco Connect desktop software for Windows and Mac computers with Linksys products. The desktop version of Cisco Connect helps consumers set up their home wireless network in a few easy steps and can also be

used to customise wireless settings to match their preferences. Additionally, consumers can now use Cisco Connect Express for quick access to these settings and controlling their wireless settings anywhere in the home from mobile devices.

The BlackBerry 7.1 OS incorporates a new feature called BlackBerry Tag that can change the way BlackBerry users share information and content. By simply tapping their NFC-enabled BlackBerry SmartPhone against another NFC-enabled BlackBerry SmartPhone, users can make sharing easier than ever. With BlackBerry 7.1, users can be productive from virtually anywhere.

They can now turn their BlackBerry SmartPhone into a mobile hotspot that can be shared by up to 5 Wi-Fi-enabled devices, including laptops and tablets. The 7.1 update also supports carrier implemented Wi-Fi calling services (UMA/GAN where available), allowing users to make Wi-Fi calls from their BlackBerry SmartPhone that don’t eat into their airtime minutes.

On the go!

Getting smartEconomies of scaleWhen workspace is at a premium and budgets are tight, small and mid-sized businesses can turn to Xerox Corporation’s new ultra compact printers and multifunction device for high quality, affordable, documents.

Standing at just over 208 mm tall, nearly the size of a standard sheet of

paper, the Xerox Phaser 3010/3040 offers print speeds of 20 to 24 pages per minute (ppm). The WorkCentre 3045 multifunction printer (MFP) copies, scans, faxes, e-mails, and prints documents all in one and produces output at 24 ppm. The products are among the smallest devices in the market and are powered by Hi-Q LED print engines.

The Hi-Q LED print engine makes the products quieter and more energy efficient than comparable products using laser technology. Adding extra productivity to the office, the WorkCentre 6015 color MFP is Xerox’s first Wi-Fi enabled device. The desktop MFP combines print, copy, scan, fax and digital workflow capabilities. With its compact size and wireless feature, it can be placed anywhere in the office, maximising space and convenience.

22 february 2012

shelf life

New generation graphics cardStay

connected

Keeping it simple

The ASUS HD 7970 uses a 28nm GPU for faster performance and lower energy consumption, together with 3GB GDDR5. ASUS improves it further via the exclusive GPU Tweak, featuring 2D/3D mode locking, voltage sync, auto driver/BIOS updates, widget monitoring, and GPU-Z integration. GPU Tweak’s multi-mode design offers users an intuitive over-clocking environment, where everyone from new users to seasoned enthusiasts can effortlessly tap better performance. The card uses PCI Express 3.0 with double the bandwidth of PCI Express 2.0, perfect for smooth multi-screen Eyefinity displays and advanced DirectX 11 implementation.

The Acer Allegro is inspired by how people communicate and live in the most modern settings. With its unique user interface powered by Windows Phone, complete with Live Tiles, the Allegro makes it easier to connect and share with friends, family and colleagues. With the most recent version of Windows Phone, code-named Mango, Live Tiles are more interactive, enabling users to get real-time information without having to open them, by pinning them to the start screen.

Handling documents, while being on the move is easy with the Allegro because integrated Office Mobile enables smart viewing, editing, sharing and syncing. The Allegro also excels at organisation with a calendar that syncs information from the phone, e-mail and Facebook, and notes important business and social events across all business and personal calendars.

Instant access to Marketplace is handy for trying, buying and searching for apps and games on the move. Marketplace features the hottest Xbox Live titles and add-ons for games, providing an avenue for socialising with your gaming friends, anytime, anywhere, all from your Allegro device. An Xbox Live avatar and profile are integrated into Windows Phone’s Games Hub to help keep track of scores and achievements as well as personalise the device to mirror your personality.

NETGEAR announced the Middle East launch of two new products that have been designed to give Ethernet- enabled gaming and home entertainment devices quick and easy online connectivity to users home network. The Powerline 500 Nano and the N900 Video and Gaming WiFi Adapter offers ultra fast network performance for home theatre units and gaming consoles, allowing users a whole new experience in online gaming and entertainment.

The new Powerline Nano 500 (XAVB5101) has been specifically developed for users who want a simple plug-and-play networking for a single device like TV’s or

gaming console units. The unit instantly converts a standard electrical wall outlet into a high-speed network connection that easily accommodates the most demanding multimedia tasks.

The N900 Video and Gaming 4-port WiFi Adapter enables consumers to connect up to four Ethernet-enabled devices at the fastest WiFi speeds available today. The adapter makes use of multiple wireless streams and dual-band technology to support multiple, simultaneous HD video streams in 1080p resolution and fast, low-latency multiplayer gaming. Utilising the unit will allow users to wirelessly stream

high resolution entertainment from multi-media streaming sites like Netflix, Vudu, YouTube and Hulu to virtually any Ethernet-enabled entertainment device in the home.

23february 2012

entrepreneurs

Over time, I have noticed that enterprising people come in all shapes and sizes and

from no particular place. They can burst suddenly onto the scene from relative obscurity, dominating the media and the stock traders’ tittle-tattle or they amass vast empires by working away diligently- carefully avoiding the limelight, more concerned with substance than style, value rather than their vanity. This raises the question of whether someone becomes an entrepreneur through choice and deliberate action, or are they simply fulfilling a destiny for which they have been fully equipped?

Whatever the answer to that question

might be the fact remains that our current

global society likes entrepreneurs, wants more

of them and is prepared to reward them. From

post-communist Russia to reforming China; from

Silicon Valley in California USA to Silicon Fen in

Cambridge UK; and now in Qatar, entrepreneurs

are encouraged and celebrated. The issue

is, therefore, what should be done to create

favourable conditions and by whom, to achieve

the right outcome.

There is some logic in the argument that

the people who are destined to become

successful entrepreneurs need no assistance.

The fact that these people have conquered,

where others have failed proves their

capability. However, this quasi-Darwinian

attitude of survival of the fittest might be too

harsh for economies which are struggling for

growth. Ignoring the talents of all but a few

may be a waste of potential.

One aspect of entrepreneurship which

has become accepted over the last decade is

that entrepreneurs are not restricted to the

commercial private sector. In what can be seen

as a reaction against global business trends,

“localisation” is creating thousands of social

enterprises developed and run by individuals

with social capital rather than a shareholder

profit, as the driving motive. Entrepreneurs are

exceptionally valuable in NGOs and employed

“intrepreneurs” are recognised as key players

working for a knowledge-based organisation.

Is it therefore more pertinent to consider who

an entrepreneur is, rather than what they do?

In fact, until their occupation (or, more typically,

multiple occupations) has been determined,

referring to these individuals as enterprising

people, gives one the freedom to focus on generic

competences which define the person.

It also helps us to avoid stereotypical portrayals or

believe that all entrepreneurs are clones or aspirants

of famous biographers. It is this examination of

the “who” rather than the “what” which is the

subject of Qatar Skills Academy’s “Understanding

Enterprise”, a development programme running

from the Bedaya Centre with the support of Qatar

Development Bank and Silatech.

Identifying peronality traitsAn enterprising person demonstrates many

different qualities, some even conflicting, which go

on to determine a career path. One of the most

important and guiding capabilities, is to possess

a sufficient level of self-awareness to be able to

control the use of one’s abilities and develop them

according to the situation. This self-awareness is

the line between confidence and determination or

arrogance and delusion.

i ThiNk, ThEREFORE i aM“Entrepreneurs are born and not bred” goes the saying. While there is some truth in this statement, after many

years of working alongside business creators and sharing their individual journeys, Ian White, Director, Qatar

Skills Academy, discusses that this is not the whole story and shares with us what really makes an entrepreneur.

24 february 2012

entrepreneurs

I refer to risk here. Attitude to risk is often

identified as one of the defining characteristics

of an enterprising person. Entrepreneurs are

frequently depicted as high-risk individuals. In

reality, as Richard Branson said, they often never risk

more than they can afford. Therefore, risk-aware is

a more accurate definition.

Developing a strong sense of personal identity

is critical to an enterprising person’s make-up.

Identity can be formed through any combination of

factors, such as family influence, national culture,

religion, childhood upbringing, and experience

of education. If any of these inputs are overtly

negative to the concept of enterprising behaviour,

they are likely to leave a lasting impression. On the

other hand, charismatic role models and a value-

driven lifestyle is likely to prove central to the inner

compass of an individual and define their outlook

to life situations.

The ability to use and control one’s talents (and

disguise or hide one’s limitations) is a skill acquired

through observation and practice. Exposure to real

situations, where control of one’s self is at issue,

either as an observer or an active participant is

essential in the learning process of an enterprising

person. Enjoyment and satisfaction in the conscious

ability to control one’s self-knowledge is the power

that fuels the engine driving the enterprising

person. It is partly this love of fluid situations and

constantly developing scenarios which characterises

the enterprising person as a lifelong learner.

An enterprising person’s perspective on a

situation, either existing or potential, is hard-wired

to his or her self image. Decision making is framed

by this central locus of control, which is why

progress is swift, non-followers are dropped and

clarity of the end result is maintained. Articulation

and description of the end result is a particular

quality of most enterprising people. The dream

which they possess becomes less of a figment of

imagination, less of a conceptual idea and more

of a reality each time it is verbalised, modelled,

prototyped and presented.

This ability to form a highly detailed vision of

the intended outcome is another of the central

qualities of the enterprising person. They will have

delved deep into their subconscious to root the

vision in a matrix of principles and values, as well

Ian White is a British entrepreneur and specialist in vocational education. His first business after university in the UK was in television production, a venture which earned him the ACE UK Entrepreneur of the Year award. During the mid ‘90s, Ian developed businesses in the vocational education and SME development sector whilst also working for the UK Government and the European Commission. He was made a Fellow of the Royal Society of Arts in 2002 for his work on enterprise education. Ian arrived in Doha in 2010 and created Qatar Skills Academy to meet the need for organisations to improve quality and productivity through investment in people.

About

as opportunities and rewards. The strength of the

vision is what will ultimately determine the quality

of the outcome.

In addition to the cerebral activity, enterprising

people adore action. Achieving the first stage of

action is often through the use of a closely knit

group of trusted followers or supporters. The ability

to discuss and present ideas is another essential skill

of the enterprising person. Communication in all

forms, in all situations and in all contexts is usually

something which an enterprising person relishes

and handles personally. In cases where this task

is delegated (because the self-awareness check

recognises that this is a deficiency) the attention to

detail and micro management of the messenger is

often so over-powering that the flavour is lost. So

even when convention may dictate that a person

should not be a public face, the credibility they

possess as the custodian of the idea should overrule

everything.

We must therefore approach the successful

breeding of entrepreneurs as a combination of

nature and nurture. After all, if everything was a

certainty, life would be very boring.

25february 2012

Ian White

One aspect of entrepreneurship which has become accepted over the last decade is that entrepreneurs are not restricted to the commercial private sector. In what can be seen as a reaction against global business trends, “localisation” is creating thousands of social enterprises developed and run by individuals with social capital rather than a shareholder profit, as the driving motive.

Developing a strong sense of personal identity is critical to an enterprising person’s make-up. Identity can be formed through any combination of factors, such as family influence, national culture, religion, childhood upbringing and experience of education.

business setup

WhaT’S ON yOuR MiNd?Setting up and managing a business successfully is not as easy as it

might seem. A few key steps need to be considered before we take off.

In the first of a multi-part series, Bedaya Centre tells us how to develop

an idea, which forms the foundation for a successful business.

Basic elements of a business ideaA good business idea is market driven and it

comes from the needs and demands of the

end users who could be individual consumers

(B2C) or businesses (B2B). Secondly, the

market should be of sufficient size to satisfy

the vision of the new startup. The question

to as is - While there may be a niche in the

market but is there a business in the niche?

Entrepreneurs also need to know if they can

develop the business idea alone or need to

bring a team together.

Importance of personality traitsThe perennial question is whether entrepreneurs

are born or nurtured. Increasingly there

is a viewpoint that many people want to

be entrepreneurs and that talent can be

nurtured. Some recent examples include, the

Entrepreneurship Postgraduate Certificate at

Carnegie Mellon University in Education City

in Qatar and the Technology Innovation and

Entrepreneurship Programme run by Qatar

Science & Technology Park. These are very practical

programmes that take the participant through the

complete business planning stage from securing

the equity funding to launching the business.

Lots of buzzwords are mentioned on the

personality traits of successful entrepreneurs.

A sample include, hard working, risk-taker,

able to multi task, customer focused,

attention to detail, team builder, able to

plan, takes the long term view and so forth.

26 february 2012

business setup

Most entrepreneurs only have some of the

characteristics often mentioned but fill in the

gaps with the team they put together.

Passion vs. profitabilityPassion is a great motivator, provided it is

founded on logic. If the idea is feasible,

entrepreneurs should follow their passion;

it will carry them through the tough times.

However, if the market is telling you that the

idea is bad and no profit can be made, it may

be time to listen and change tack.

• The marketing campaign is developed

in-house by the manufacturer and lacks

objectivity.

• The product is untested by consumers and

only the company can assert its benefits.

• The Website is the primary place to order,

Passion is a great motivator, provided it is founded on logic. If the idea is feasible, entrepreneurs should follow their passion; it will carry them through the tough times. However, if the market is telling you that the idea is bad and no profit can be made, it may be time to listen and change tack.

The perennial question is whether entrepreneurs are born or nurtured. Increasingly there is a viewpoint that many people want to be entrepreneurs and that talent can be nurtured.

Risk assessmentThe market is an unforgiving arbitrator. The

business idea must satisfy the needs of a

customer. Many products fail to satisfy the

market. Some reasons for failures include:

• No market research on the product or the

market has been done.

• Most of the budget was used to create

the product; little is left for launching,

marketing, and selling it.

• The product is interesting but lacks a

precise market.

• The product’s key differentiators and

advantages are not easily articulated.

The product defines a new category,

so consumers or customers will need

considerable education before it can be sold.

• The sales force doesn’t believe in the

product and isn’t committed to selling it.

• Because the target audience is unclear, the

marketing campaign is unfocused.

• Distribution takes longer than expected

and lags behind the launch.

• Sales channels are not educated about

the product and thus are slow to put it on

shelves.

• The product lacks formal independent

testing to support claims.

but the product description is unclear and

the site isn’t fully functional.

However, entrepreneurs should not be

afraid of failure. If you study the biographies of

many of the today’s most successful business

heroes, you will find a personal story of failure

and recovery. It is not important that you failed

but what matters is how you pick yourself up

and learn from the experience.

Dos and don’tsDos• Put the customer first all the time.

• Listen to your customers.

• Conduct quality market research.

• Test the market before you fully launch.

• Involve potential customers at the early

design phase.

• Provide the maximum value consistent with

the sales price.

Don’ts• Believe your own marketing PR.

• Underestimate your customers.

• Assume “ because I can make a better

mouse trap, the market will agree”.

• Build your dream team with friends;

you need people with specific talents to

complement the team.

How to capitalise on 2022No matter what your business is, there

are opportunities for both SMEs and large

enterprises because of the World Cup.

Business owners should actively engage

in research and brainstorm on the potential

opportunities. Construction projects, related

to the World Cup facilities, will present the

major opportunities in terms of new stadia,

infrastructure, and new hotels among

others. However, there will be many service

requirements in design, IT, hospitality and

tourism, sport and other education services, to

name just a few.

Startups may wish to diversify their service

or product offerings after researching about

the market opportunities leading up to 2022.

Additionally smaller companies, with limited

resources, might wish to partner with overseas

vendors who might have specific expertise and

greater financial muscle.

The population in Qatar is expected to

rise from 1.7 million in 2012 to 2.1 million

in 2022, which in itself presents additional

opportunities. So what are we waiting for?

let’s begin!

27february 2012

The Bedaya Center is a partnership between Silatech and Qatar Development Bank. With the tag line “for entrepreneurship and career development” it has a prime focus to encourage young Arabs to set up their own businesses and look to the many opportunities presented by the World Cup 2022.

About

legal

28 february 2012

Recognising that the participation of foreign investors is an integral part

of the successful realisation of this policy, Qatar continues to implement new legislation aimed at liberalising the business environment for such investors, and introducing incentives and exemptions that supplement the country’s already considerable investment appeal.

1. LegislationThe principal piece of legislation

governing foreign investment into

Qatar is the Foreign Investment Law.

Other material legislation includes

the Commercial Companies Law,

the Ministerial Decision regarding

the Organisation of Commercial

Representative Offices, the Commercial

Agencies Law, the Proxy Law and the

Tax Law.

In keeping with the goals enunciated in its National Vision 2030, Qatar has worked to shift its economic and

developmental focus away from a reliance on oil and gas by promoting a policy of economic diversification.

Emma Higham, Senior Associate, Corporate and Commercial, Clyde & Co, gives us an overview of the rules and

regulations that a foreign investor should be familiar with when doing business in Qatar, which differ from the

rules for GCC investors.

RuLES OF ThE GaME

2. Which business medium?A foreign investor can chose between

various business mediums, including

Company, Branch, Commercial Agency,

and Commercial Representative Office.

CompanyA foreign investor will usually apply to register

a company with the Ministry of Business

& Trade (MBT). The forms of corporate

vehicle that are most likely to be of interest

saleslegal

29february 2012

to foreign investors are Limited Liability

Companies (LLCs), Article 68 Companies,

Single Shareholder or Person Companies.

An LLC To set up an LLC, a foreign investor has to fulfil the following conditions:

A. must have minimum capital of QAR

200,000;

B. must have at least 51% Qatari

ownership unless an exemption is

obtained;

C. must have profit shares that do not

necessarily have to reflect individual

shareholdings;

D. 10% of each financial year’s net

profits must be kept within an LLC

until the cumulative reserve stands

at 50% of the share capital;

E. may not raise capital by public

subscription or issue freely

transferable shares or bonds;

F. shares may only be transferred

after they have first been offered

to the other shareholders by way of

pre-emption unless such rights are

waived; and

G. may not carry out banking or

insurance business or provide

investment services to third parties.

Article 68 Company

The characteristics include:

A. formed between an investor,

which may be foreign, and the

Government or a company in which

the Government holds shares in the

share capital of a company;

B. the non-Qatari investor’s share of

the company can be greater than

51% subject to Council of Ministers’

approval;

C. corporate structure is of a “Qatari

Shareholding Company with

Government Participation”; and

D. falls outside the Foreign Investment

Law and, to a certain extent, the

Commercial Companies Law.

Single Shareholder or Person Company

(SPC)

The Foreign Investment Law provides that

a foreigner may own 100% of an Single

Shareholder or Person Company (SPC) in

one of a number of market sectors, being

agriculture, industry, health, education,

tourism, the development of natural

resources, energy or mining, consultancy

and technical services, information

technology, culture, sport and recreation/

entertainment services and distribution

services, subject to approval by the

Minister of Business & Trade (Minister);

such permission is not granted frequently.

Characteristics include:

A. a minimum capital of QR 200,000;

the Ministry has indicated that it

will prioritise SPC applications if the

share capital of the company is in

excess of the minimum and where

the company’s activities will add

value to the Qatar market; and

B. subject to the laws relating to LLCs.

BranchA Branch or a contracting division of a

foreign company may be registered in

Qatar at the discretion of the Minister.

Branches are contract specific and

registration will only be given for the

duration of the contract. A special

regime applies to the branches of foreign

engineering consultancy firms.

Commercial AgencyInstead of establishing a presence in

Qatar, a foreigner can appoint a 100%

Qatari entity or individual agent to

market and sell goods within Qatar; any

provision of services by that Qatari agent

should be ancillary to such marketing

and selling.

Exclusive agencies must be registered

and are governed by Qatari agency law.

Under a registered agency, commission

(up to 5%) is payable on all sales of the

products within the territory even if the

sales are not a result of the activities

of the agent. It is difficult to terminate

a registered agency. Compensation is

payable upon the termination of the

agency, including upon the expiry of a

fixed term agency. Similar rules apply

to arrangements which do not call

themselves agencies, but which have the

same effect.

Emma Higham

The Foreign Investment Law provides that a foreigner may own 100% of an Single Shareholder or Person Company (SPC) in one of a number of market sectors, being agriculture, industry, health, education, tourism, the development of natural resources, energy or mining, consultancy and technical services, information technology, culture, sport and recreation/entertainment services and distribution services, subject to approval by the Minister of Business & Trade (Minister); such permission is not granted frequently.

legal

legal

30 february 2012

Commercial Representative Office (CRO)CROs are “shop windows” which can ONLY

be used to promote and introduce foreign

businesses in and to Qatar. When a CRO

is successful in attracting business, that

business must be carried out either outside

Qatar, or by a Company or Branch registered

with the MBT to do business in Qatar.

3. Registration and other formalitiesGovernment Liaison Officer: All Qatari

registered entities, as a matter of good

practice, should appoint a government

liaison officer or a facilitator to carry out the

necessary registration formalities associated

with establishment (a facilitator can also

assist investors in obtaining business permits

and licences after registration is complete).

The steps set out below are a brief overview

of what is required.

Company Formation – The requirements to

register a company and obtain a Commercial

Registration (CR) are as follows:

A. Articles of Association in Arabic

which must be approved by Ministry

and subsequently executed in front

of a notary public at the Ministry;

B. notarised, legalised and

authenticated copies of the foreign

investor’s constitutional documents;

C. notarised, legalised and

authenticated power of attorney

from the foreign investor to its

incorporation representative in Qatar

(individual investors must be present

in Qatar at execution and have a

valid passport);

D. letter from a bank indicating the

deposit of share capital (in full) at

that bank; and

E. Qatar Chamber of Commerce

Registration.

Once the company has been

incorporated and the CR has been issued,

the share capital can be released to the

company’s general manager (or Directors)

for the purposes of running the company.

The following licences must then also be

obtained:

F. Trade Licence and Signage Licence

issued by the appropriate Qatar

Municipality (a lease contract for

the office of the company will be

required amongst other things); and

G. Employer’s Immigration Department

Identity Card issued by the

Immigration Department.

Branch Registration: The requirements to

register a Branch and obtain a CR are

similar to that of a Company, however

a copy of the contract on which the

Branch registration will be based and

authorisation from the Minister to register

a Branch will also be required.

4. Corporate income taxThe Tax Law provides that any income

attributable to foreign investors (unless

a specific exemption has been granted

or an entity has been registered in the

Qatar Science & Technology Park) are

taxed at a flat rate of 10%; this will

include corporate dividends paid to foreign

investors and all the contract income

received by a Branch.

Where services are provided in

Qatar by a foreign individual or entity

which cannot demonstrate that it has

a permanent place of establishment in

Qatar, a Qatari registered entity or Qatari

national must withhold 5% or 7% (the

percentage will depend on the services

provided) of any payments made for those

services.

5. Free zonesDespite the enactment of a law in 2005

providing for the establishment of general

Free Zones in Qatar there are currently

no such zones. The Qatar Science &

Technology Park (QSTP) does have a special

free zone status. The QSTP is a centre

of research and commercial excellence

for scientific development and regionally

produced intellectual property for both

Qatari and foreign partners.

6. Qatar Financial Centre (QFC)The QFC Law established the QFC as an

international business centre for financial

services. The entities registered within the

QFC may operate and trade without a local

sponsor or service agent and are governed

by the QFC rules and regulations.

7. Intellectual propertyTraditionally, intellectual property rights

were not as well protected in Qatar as in

more developed jurisdictions. However,

Trademark and Copyright laws were

enacted in 2002, followed by the Design

Law in 2005 and a Patent Law in 2006.

Note: All Qatari Laws (save for those issued

by, for example, the Qatar Financial Centre

(QFC) to regulate its own business) are issued

in Arabic and there are no official translations,

therefore for the purposes of drafting this

article we have used our own translations and

interpreted the same in the context of Qatari

regulation and current market practice.

Emma Higham is a corporate and commercial lawyer with over nine years experience. Having been based in Qatar for nearly seven years, Emma incorporates her extensive knowledge of the local law when advising both local and international clients. She advises on a wide range of corporate and commercial matters, including local establishment by way of joint venture, banking and finance and providing regulatory advice in relation to the establishment of businesses in the Qatar Financial Centre. Emma joined Clyde & Co in October 2007, having previously worked for another international law firm for six years, both in London and Qatar. Prior to that Emma worked for Price Waterhouse for eight years in both audit and corporate recovery.

About

Exclusive agencies must be registered and are governed by Qatari agency law. Under a registered agency, commission (up to 5%) is payable on all sales of the products within the territory even if the sales are not a result of the activities of the agent. It is difficult to terminate a registered agency.

http://www.PrivateSectorQatar.com/en

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trade

ENSuRiNG FOOd SECuRiTyWith rising population and changing consumer habits, food security is

one of the most important issues facing the Gulf countries. Dr. Ashraf

Mahate, international trade and business expert, talks to us about how

the region can deal with this situation.

Gulf countries currently import approximately 65% of their food requirement, amounting

to USD 25.8 billion (2010 data) or 3% of the total regional GDP. It is predicted that this trend will continue and food imports will rise to USD 36.3 billion in 2015 and USD 53.1 billion by 2020.

The fear that Gulf countries may not be

able to feed their population has resulted

in them pursuing a number of different

strategies, most notably the purchase of

land banks in various friendly countries in

Africa, Central Asia, Southeast Asia and

Eastern Europe, building strategic stock piles

and enhancing domestic production, where

possible through subsidies or investment in

new farming techniques.

More formally food security implies

“access to sufficient, safe, nutritious food to

maintain a healthy and active life” (Definition

adopted by the 1996 World Food Summit).

Such a broad definition embodies three

key factors, namely the availability, access,

and utilisation of food. In the case of food

availability, the definition assumes that

sufficient quantities need to be available

on a consistent basis either through reserve

stockpiles, trade or even aid.

Second, access to food assumes that

people should be able to acquire it in sufficient

quantities either through purchase, domestic

production, barter or even aid. Third, the

utilisation of food assumes that it needs to

have a beneficial nutritional value and as such

it needs to have appropriate cooking, hygiene,

storage and sanitation facilities.

So far the governments in each of the

Gulf countries have pursued the various food

security strategies without any real involvement

from the private sector. This is despite the fact

that the private sector is many times larger

than the public sector and has the ability to

contribute to the achievement of national

goals. Of course, unlike the public sector,

which seeks to enhance social welfare private

businesses are motivated by potential profits of

a project or venture. In this regard, the private

sector can play a pivotal role in enhancing

government efforts in the area of food security.

Private businesses have the potential to

carry out sustained long term investments

in agriculture, as well as food production

and storage. The private sector also owns

and manages a vast amount of knowledge

and intellectual property, some of which

can be used in the area of food security.

More importantly, global food security

poses challenges which are complex and

interconnected, therefore, the private sector

with its established resources and experience is

more able to innovate than the public sector.

In order to effectively deal with the

challenges posed by the food security problem

there needs to be strong partnerships between

public institutions and the private sector.

There is a growing global realisation that

governmental institutions need to work with

the private sector.

This realisation also comes about due to

the need for governments to become more

efficient and effective through the removal

of duplicative activities. At the same time the

public-private partnerships seek to scale up the

activities of the private sector. In doing so these

partnerships seek to work on one or at best a

few large projects or initiatives, whereby all the

partners can utilise their strengths, instead of

the government using its cheque book to solve

a problem that may not be sustainable.

These partnerships need to allow for the

sharing of resources, risks, and of course

benefits. In this manner the partnerships

become more than an avenue for raising low

cost finance. More structured partnerships

tend to include those involved in knowledge

centres such as, universities and research

institutions, farmers or even owners of land

along with businesses in food production and

storage as well as firms in the logistics and

retailing sector.

In this manner the public-private partnerships

seeks to incorporate all the participants in the

value chain or at least as many as is possible,

for the initiative to achieve its desired outcome.

The coming together of these different groups is

underpinned by the common benefits that arise

from the synergies of the partnership.

Typical examples of the common benefits

are a reduction in costs and risks entailed in

research as well as the provision of direction

towards market driven relevancy of research;

the bringing together of complementary

abilities, skills, and resources and hence

improved competencies and the ability to

32 february 2012

trade

allow small scale firms (SMEs) to access

knowledge and technologies which they

would not otherwise have the ability to exploit.

is generally considered to be the rate that satisfies all the parties. A totally equitable ratio would be where each party receives the same rate of increase on their investment (cost).

Various examples have shown that public private partnerships have the ability

to harness the experience and strength of small and medium size enterprises. However,

for this partnership to take place and for the development of the SME sector to happen, governments need to create an enabling

environment. The key aspect of the enabling

environment is the incentives that are made

available to SMEs to harness their experience

and ability to advance the cause of food security.

Dr. Ashraf Mahate is an expert in international trade and business and an experienced consultant with over 20 years experiences both within the GCC and Europe. During this period Dr Mahate has assisted various small and medium sized companies to effectively penetrate foreign markets. Dr. Mahate has been a past director of a number of companies including a venture capital company and a private equity fund. Dr Mahate has also worked with governmental organisations in the region in developing a national export strategy, free trade agreements, export support and facilitation programmes and practical export training. Dr Mahate carries out his consultancy activities through Bayswater Consulting a company specializing in assisting the SME sector. Dr Mahate received his doctorate from Cass Business School in the UK, which was ranked 10th best in the world. Dr Mahate is a member of the Chartered Institute of Managers (UK) and a Member of the Institute of Commercial Management (UK). Dr Mahate is also a member of the Association of Certified Anti-Money Laundering Specialists (ACAMS). Dr. Mahate can be contacted via e-mail at: [email protected]

About

In order to effectively deal with the challenges posed by the food security problem there need to be strong partnerships between public institutions and the private sector.

Private businesses have the potential to carry out sustained long-term investments in agriculture, as well as food production and storage.

The coming together of public and private

participants also allows for divergent interests

of both sectors to converge. For instance, a new

invention or technological breakthrough may

improve yields for small scale producers (which

are typically the case in the UAE) with minimal

usage of water. This in turn will generate higher

profits for the food storage and processing

industry. At the same time it allows for the

knowledge centre to immediately commercialise

research and bring it to the marketplace.

Therefore, public-private partnerships

are formed and maintained as long as all

the participants believe that benefits will be

accrued. This may be the case even though the participants may have different goals or objectives. The ideal situation for such a partnership is where the benefits are positive and proportional to the cost incurred by each party. Although, there is no golden rule as to what may be considered proportional, it

In the first instance, governments

need to reform laws and policies that

guide business activity as well as

to incorporate SMEs into the public

private partnership framework. Second,

governments need to build investor

confidence through investment in

infrastructure and the support of

research and development centres.

The establishment of research and

development centres will allow for

the private sector, especially SMEs to

innovate and market the inventions and

ideas that are developed. Third, the

private sector and in particular SMEs

need to be encouraged to enter the

agriculture, food storage and production

industries so as to ensure the future

security of the country’s food supplies

and to capitalise on the huge reservoir

of unused potential especially within the

SME sector.

33february 2012

Dr. Ashraf Mahate

export

kNOW yOuR dESTiNaTiONQDB launched Qatar Export Development Agency – TASDEER, to boost foreign trade and to globally promote Qatari-made goods and products. We provide access to finance, credit insurance and advisory services for exporters, and to support businesses to develop their export capabilities through development and promotion. By protecting national exporters against the non-payment risk from the foreign buyers that might occur due to either political or commercial events, TASDEER supports the growth of Qatar’s exports.

34 february 2012

Tasdeer conducted a workshop on Export Market Analysis Tools, which focused on enabling

participants on export related aspects, such as: assessment of country market or product portfolios , diversification opportunities, assessment of competition, and assessment of trade potential of target countries.

The workshop was attended by 46

representatives from 43 export oriented

companies across diverse product categories.

The agency also offers pre-shipment

and post-shipment r isk cover to

protect the exporter against the loss

of production costs.

However, before shipping, exporters

need to do due diligence to determine if

the chosen product will fare well in the

target market before they decide to ship

the products across. Selection of the right

export commodity is crucial for success in

the export business and depends on number

of factors. These factors are:

• Export/Import trends: The exporter

should utilise publications and contact

organisations to analyse the trends in

international trade of a particular product.

Research the demand; research the

distributors; research a good purchase

price and selling price - research to

prevent any mistakes in your business.

• Supply base: A steady supply base is

essential. You need to ensure that the

product can be supplied on time and in a

certain quantity.

• Manufacturing capacity: Inability of the

exporter to deliver the product, due to

limited production capacity, can spoil the

exporting firm’s reputation and image.

Therefore it is important to know the

production capacity in the short and

long term.

• Product adaptability: To ensure the

success of a product in domestic and

foreign markets, it is necessary to adapt

the product to meet export market needs.

The exporting firm should determine if

the product requires a change in colour,

size, taste, packaging and so forth.

• Target markets: The product should not

only have a stable but rising demand

in the target market. It is necessary

to determine this demand through

continuous demographic and market

research to understand what the future

demand will be like and how will the

exporter cater to it.

• Servicing facility: If the exported product

requires after-sales service, the exporter

will have to either open a servicing centre

abroad or find an agent who can provide

this service.

• Trade restrictions: Products selected for

export should be exportable by the Qatari

To determine if a market is safe and compatible with the product you intend to export, a market factor assessment must be conducted. The goal of a market analysis is to determine the attractiveness of a market both now and in the future.

35february 2012

export

export regulations. Qatar is member of

the World Trade Organization and the

World Intellectual Property Organisation

(WIPO) but it is not a party to the Paris

Convention for Protection of Intellectual

Property, protection of trademarks,

copyright and patents are largely

dependent on Qatar’s own national laws

and regulations

Market Factor Assessment

To determine if a market is safe and

compatible with the product you intend to

export, a market factor assessment must be

conducted. The goal of a market analysis is

to determine the attractiveness of a market,

both now and in the future. Organisations

evaluate the future attractiveness of a

market by gaining an understanding of

evolving opportunities and threats as they

relate to that organisation’s own strengths

and weaknesses.

Organisations use the findings to

guide the investment decisions they make

to advance their success. The findings

of a market analysis may motivate an

organisation to change various aspects of its

investment strategy.

The Market Factor Assessment provides

a complete breakdown of the factors.

The exporter should rate each prospective

country based on the market condition

scale of 1 (poor) – 5 (excellent). The

exporter should then tally the results of the

researched data collected in order to identify

the target markets.

First, the exporter should look at the

demographic and physical environment and

consider the following factors:

• Population size, growth, density

• Age distribution

• Urban and rural distribution

• Climate and weather variations

• Shipping distance

• Physical distribution and communication

network

• Regional and local transportation

facilities

Second, the exporter needs to look at the

political environment to ensure that there

is a stable government in place and if they

are signatories or members of international

trade organisations. While analysing the

political environment, the following factors

should be looked at:

• System of government

• Government involvement in business

• Attitudes toward foreign business trade

• Political stability and continuity

• Fair/free trade mind-set

• National trade development priorities

Third and one of the most important

aspects is the economic environment,

which includes:

• Overall level of development

• Economic growth

• Import and export percentage of total

economy

• Balance of payments

• Currency: inflation rate, availability,

controls, stability

• Per capita income and distribution

• Disposable income and expenditure

patterns

Once you have decided to focus on

exporting, take time to consider social and

cultural factors in the foreign country. These

factors can be :

• Literacy rate, educational level

• Existence of middle class

• Similarities and differences in relation to

home market

• Language barriers

It is important to find out how trade-

friendly are the rules and laws of the

importing country. This means looking at:

• Adequate distribution network

• Documentation and import regulations

• Local standards, practices, and other non-

tariff barriers

• Patent, trademark, copyright protection

• Adequate dispute resolution mechanisms

• Tax laws, rates

Changes in the market are important

because they often are the source of new

opportunities and threats. Moreover, they

have the potential to dramatically affect the

market size.It helps to know the potential of

the product based on :

• Customer needs and desires

• Local production, imports, consumption

• Exposure to and acceptance of product

• Attitudes toward products of foreign

origin

• Competition

With the advent of globalisation,

borders are fast disappearing and as

goods and services move across countries,

it is important to take a moment to think

about all the factors mentioned above.

As mentioned earlier, due diligence on

these factors is imperative to ensure that

you are exporting the right product to the

right market.

business guru

RECRuiT yOuR Way TO SuCCESSBayt.com was established to provide a link between job seekers and employers in the Middle East by

leveraging the Internet to provide free access to employment opportunities. The motivation that powers Rabea

and Bayt.com is an obsession to empower others to lead better lives, by creating technologies that will help

people lead the lives that they want for themselves. Private Sector Qatar talks to Rabea Ataya, CEO,

Bayt.com to know more about the Internet-based recruitment company’s best practices.

What is your management philosophy

and vision?

Bayt.com›s management philosophy and

vision revolve around leadership and

empowerment. At Bayt.com, we believe that

most effective leaders in the world history are

those who:

• Are admired and respected by their peers

and juniors.

• Lead from the front and are not hidden

away in ivory towers far away from the

action.

• Form strong personal relations with

their team that transcend just a working

relationship.

• Are supportive and respectful.

Every Bayt.com employee is actively

required to be a leader as well as to empower

others. We do this by ensuring that our

corporate culture preaches respect, and

allows the freedom to act independently

within a framework. People, planning,

perseverance and passion are the four basic

Ps of a successful business. This is what we

believe in. We are here not to make quick

money, but to build a successful business that

we are passionate about.

Bayt.com has 227 employees in 12

different countries. 73% of the workforce is

Arab, and 27% is non-Arab and we have 15

different nationalities.

What is innovative about your approach

and what are your most notable

achievements?

At Bayt.com, we are constantly striving

for innovations that anticipate and

meet the needs of both job seekers and

employers. Our teams work very hard

to ensure relevancy, above all else, and

that requires a lot of innovation. Our

goal is to ensure that job seekers have

relevant job recommendations, have

access to relevant career development

resources, and have the ability to create

CVs and cover letters that are relevant

to the jobs they seek.

36 february 2012

business guru

During the past 11 years, we have

innovated a lot to achieve relevancy. Some

of our innovations are technological; our

proprietary industry-leading CV search tool,

for example, has very intricate algorithms that

were custom designed by highly specialised

teams at Bayt.com. Other technical

innovations include Bayt.com Salaries, Bayt.

com Career Watch, Bayt.com People and

Bayt.com Classifieds. Some innovations are

related to services; Bayt.com’s Career Services

team for instance, helps job seekers on a

case-by-case basis in order to ensure they are

maximising their professional branding and

career planning.

What challenges have you faced along the

way and how did you deal with them?

The story of Bayt.com’s success has been a

story of hard work, commitment, persistence

and an unwavering commitment to

excellence, innovation and integrity. When

Bayt.com was founded in 2000, the main

two challenges were the very limited internet

penetration in the Middle East at the time

and also the task of very speedily educating

our various stakeholders about unique

features and huge unparalleled benefits of

online recruitment we were introducing in

the region.

How has the company fared during the

period of economic slowdown? Did you

have to change your approach in the past

two-three years?

One of Bayt.com’s key strengths as a

sustainable business has been its flexibility

and ability and willingness to recognise,

anticipate and adapt to change readily

and in an optimal fashion. We recognised

early on that the economic slowdown

would actually only further consolidate our

leadership position across the region as

a heightened emphasis on sourcing only

What is your opinion about the job

market in Qatar? Which sectors do

you think are going to offer more job

opportunities in the near future?

Qatar is one of the main job markets that

Bayt.com caters to. With over 2,600 vacancies

in Qatar advertised on Bayt.com in 2011 and

more than 3,500 registered Qatari professionals,

we are successfully bringing together Qatari job

seekers and employers in an efficient and user-

friendly environment. In fact, a job posting in

Qatar that is advertised on Bayt.com receives an

average number of 622 applications.

In terms of the employment conditions

in Qatar, Bayt.com’s latest Job Index survey

[October, 2011] revealed that 63% of Qatar

companies are planning to hire in 2012.

The same survey also provided insights

into what employers look for in candidates

in Qatar. In terms of education, the most

demanded qualifications are engineering

(26%), computer science (22%) or business

management (20%). Similarly, when it comes

to experience, Qatar employers seek candidates

with managerial skills (43%) and computer skills

(26%). Meanwhile, the ability to communicate

effectively in English and Arabic (60%) as well

as team player abilities (49%), are traits that are

highly desirable by employers in Qatar.

The survey also revealed that Qatar is

rated as the most attractive country in the

region with 49% of professionals saying it is

much more attractive than other countries

in the region; UAE came second, while KSA

came in third. As for the industries that are

attracting or retaining top talent in Qatar,

construction ranked first (52%), followed by

oil, gas and petrochemicals (43%).

One of Bayt.com’s key strengths as a sustainable business has been its flexibility and ability and willingness to recognise, anticipate and adapt to change readily and in an optimal fashion.

Speaking of industries, Bayt.com’s Top Industries Survey [December, 2011] showed that the oil, gas and petrochemicals industry is considered to be the most appealing industry in Qatar, for it offers the best pay (63%), best benefits (49%), best work-life balance (44%) and best opportunities for career growth (55%).

Speaking of industries, Bayt.com’s

Top Industries Survey [December, 2011]

showed that the oil, gas and petrochemicals

industry is considered to be the most

appealing industry in Qatar, for it offers

the best pay (63%), best benefits (49%),

best work-life balance (44%) and best

opportunities for career growth (55%).

This industry also seems to be retaining

the best talent in Qatar, is currently hiring

the most, and is most popular for both

local talent and expats. As for the industry

that is most popular amongst women in

Qatar, education and academia ranked first

(17%), while government and civil service

positions seemed more popular amongst

fresh graduates (15%). The industry that is

perceived to have downsized the most in

Qatar is construction.

As far as the public sector is concerned,

46% of professionals in Qatar favor the

government as an employer.

the very best human capital, coupled with

drastically shrunken HR budgets and an

increased attention to maximising HR ROI in

sophisticated corporations across the industry

spectrum. We have used the period of slower

economic growth to build stronger, more

endearing and more creative relationships

with our clients, to increase their loyalty,

and to increase and diversify our product

offering further to take advantage of new

opportunities to deliver value.

37february 2012

business guru

What are the salient features of your HR

policies and training for staff?

A very important aspect of success is constant

training, and Bayt.com is well aware of that.

We have a STARS Training methodology that

is applied company wide. In STARS, employees

undergo periodic training related to:

1. Systems: The understanding of our internal

and external software processes.

2. Techniques: The systematic procedure by

which a task is accomplished.

3. Activities: Measurable amount of work

performed in converting inputs to outputs.

4. Role-Plays: Acting out actions in a

simulated situation.

5. Stories: A true account of a client

interaction where a lesson learned was

applied towards a successful outcome.

Aside from the STARS system, all employees

are encouraged to participate in external

trainings and seminars, for which we cover the

costs. We also have the Speaker Programme,

where leading individuals come to our offices

on a monthly basis to talk about topics that

are interesting, like innovation through

moviemaking and the psychology of change.

Are your processes eco-friendly?

Green processes are at the heart of all our

activities at Bayt.com. Here are just a few of

the ways green thinking is the very core of our

business operations:

• Online recruitment has meant paper CVs,

paper files and physical letters and filing

cabinets and storage space associated

with the recruitment process are both

unnecessary and inefficient. Video CVs

have also meant less of a carbon footprint

associated with the screening process and

less inefficiencies and waste.

• Branded career channels have allowed

leading organisations across the MENA

to tap into Bayt.com’s green platforms to

eliminate inefficiencies associated with the

traditional recruitment process.

• Virtual job and education fairs have also

greatly elevated the green ethos in the

region by eliminating the need to create

expensive venues.

• We have eliminated our sales collateral

in favour of online presentations and live

tutorials which are more targeted, more

engaging and more eco-friendly.

Are there any CSR initiatives undertaken

by your firm?

We have had many CSR initiatives over the

past 11 years, as they are a part of our identity

as a company. These include – sponsoring

orphans from all over the world on behalf of

each and every employee with a long serving

history with us, donating a fixed percentage of

revenue to charities, offering free job postings,

university outreach programmes and road

shows.

What are your plans for the next five years?

We have huge plans for the next five years.

Bayt.com will continue to deliver on its

longstanding commitment to the region to

deliver the indisputable best recruitment

technologies, tools, services, insights and

local customer support available in the

region today and also the greatest amount

of recruitment choice for both talent and

employers. We expect our leadership margins

to be widened significantly further as several

key initiatives we have only soft launched

this year including Bayt.com Salaries, Bayt.

com Communities,Bayt.com Career Watch

and Bayt.com People become more formally

entrenched in the regional recruitment

landscape. At the same time we will continue

to launch new products and iterations and

grow our professional communities.

Branded career channels have allowed leading organisations across the MENA to tap into Bayt.com’s green platforms to eliminate inefficiencies associated with the traditional recruitment process.

Rabea Ataya

Rabea founded and continues to serve as the CEO of Bayt.com. The company was launched in June 2000 to address the massive unemployment issue in the Middle East by leveraging the Internet to give job seekers free access to employment opportunities in a region that has historically had limitations on the flow of both information and people. Today Bayt.com, serves over 6.5 million registered professionals and over 30,000 employers in the region and helps both parties match opportunity and talent quickly, easily, and cost-effectively. In his role as the CEO, Rabea has recruited the executive team, has raised several rounds of venture capital and private funding and has led strategy, direction and implementation. Rabea is also the recipient of the Middle Eastern E-Entrepreneur Award given by His Highness Sheikh Mohammad Bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, for his outstanding contributions to the region’s knowledge economy. In 2010, Rabea co-founded GoNabit.com, the first group buying site in the Middle East. He successfully built the organisation and sold it to LivingSocial, a leading global player in the field, within one year of founding.

About

38 february 2012

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sales

goodbad

uglyAt a time when a handful of accounts can mean the difference between

make or break, many sales companies are pushing the boundaries to

seal the deal. But in doing so some are committing cardinal sales sins,

says Jennifer Baxavanis, Managing Partner, BAX Consulting.

I am going to share a story about Karim, Vice President of sales at a well known occupational health and

safety company, and of the good, the bad and the ugly, which transpired from his sales tactics.

The story Karim was anxious to meet up with me to

share some of his latest sales successes.

He told me, “Jennifer, you are not going

to believe this, but we have taken 54% of

the market from our competitors in two

months. You have to share these lessons

with others.”

Karim has many qualities of an effective

sales person; confident, switched on,

empathetic, carries himself well, and adaptable

to any environment and any person. “Shoot,”

I said.

“I had to do something! My sales team has

spent the last few months just sitting around,

so I decided to create a multiple day field trip

to show them how it is done. I piled the three

of them in the car with me, and told them

our objective- ‘we are taking the market away

from x and y.’ I informed them that they are to

breathe sales. For these days, they are either

in a sales meeting, or in the car, on the phone

40 february 2012

sales

fixing up the next meeting. Once, we even

stormed into the customer’s office, introduced

me as the VP of sales, talked to them, stuck the

contract in their faces and made them sign.”

I interrupted, “Interesting. What was the

dialogue between you and the prospective buyer?

Did you ask questions or talk about the company?”

Karim carried on, “No, I tell my sales

persons not to ask too many questions. I have

taught them to tell the customers what they

need to know and to ask if the buyers have

any questions. If the buyers reply that they

have no questions, then we pass them the

contract and say ‘Great, sign here.’ Of course,

we had to find out who their contract was

with, how much they were paying and when

the contract expired. Then, I told them that

they were overpaying and they could sign now

for the ‘real’ price and take what they were

paying down by about 20%.”

“Did they sign?” I asked.

“Jennifer, we stayed in their office until they

signed, and a lot of them did. They could not

get rid of us,” Karim added.

“Is your company offering something

different or better? How did you convert

them,” I asked.

“Well, they liked the fact that I came,

because it shows energy and persistence. Jen,

they were not used to their supplier coming

to their office, and they liked the lower price.

We have nothing more to offer them, as our

service is the same as our competitors. There is

not that much room for customisation,” Karim

continued. “Some of them felt loyalty towards

their supplier and some of them were angry at

their supplier, so we made sure we pushed the

angry ones to convert, using a lower price.”

“Wow, so it worked for all of them?” I

asked excitedly.

“With some of them it did, and with

others it didn’t. Our competitors figured

out what we were doing and sent out

renewal forms with even lower prices to the

customers we had already seen and also to

the customers we had not seen yet. They

thought they were going to outsmart us. So,

do you know what we did? When we came

back the second time to their customer, we

took off another 20% just to make sure the

customer saw that their current supplier was

still deceiving them.”

“Wow Karim, that is quite aggressive. How

did the customer react?” I was so intrigued by

these methodologies.

The goodTake control: Karim abandoned the

reliance of “relationship based” selling

and took the bull by the horns. He did well in

going to see the prospective buyer, provoking

a pattern change.

Form an objective per sales call: Karim

and his sales force formed an objective

as per sales call. The objective did not

include their service presentation or get

to know the customer. “I told them our

objective – we are taking the market away

from others.”

Train your team: Karim took it upon

himself to go into the field with his team

to show them how his sales process works.

On-the-job training is the most effective way

to increase learning retention.

Use authority: The prospects felt flattered

that the company’s VP of sales took the

time to see them. Karim used his authority to

influence the buyer’s perspective of his sales effort.

1

2

3

4

Karim could have applied a “positive tension” by promising an added service if the contract was closed on the same day. Also, cornering a prospective buyer to sign a contract will not bring repeat business.

Cutting prices devalues your product. It is more effective to show how your price equals the value you are promising. Karim should have asked the buyer what he was looking for in health and safety services and then matched that with his service offering and price.

“Some of them liked it and some of

them felt suspicious, but we stayed until we

obtained an answer. We even followed one

guy to his car to sign, and he asked us to leave

him alone,” Karim added.

I couldn’t believe it, so I asked, “Do you think

that customers will stay with you for a long time?

Do you think these are the best methodologies?”

The good, the bad and the uglyKarim did apply many effective selling

approaches, but he and his team made some

lethal mistakes. He committed the good, the

bad and the ugly of sales.

Determine the budget and timeline:

Karim made it a point to find out the time

and budget parameters to qualify the prospect.

Be persistent: Karim attempted to close

a contract at the first contact meeting.

His urgency pushed the customer into a

buying decision.

5

6

41february 2012

sales

Don’t forget that the customer is the

expert: Karim neglected to find out

what the customer really wanted or needed.

“I tell my sales persons to not ask too many

questions.” He was not successful in some

of his sales because the buying decision

became based on a price war. He assumed

that he knew what the client wanted and

chose to attract and convert them based

on price. Easy come, easy go. Some of

the prospects went back to their current

suppliers and played the same game back.

The bad and the uglyDon’t be pushy: In the same way that

we applaud Karim for being persistent,

there are instances where Karim pushed too

hard and the customer resisted by becoming

uneasy. Karim could have applied a “positive

tension” by promising an added service if

the contract were to be closed on the same

day. Also, cornering a prospective buyer

to sign a contract will not bring repeat

business.

Don’t cut your price: Karim cut prices

because he could not show the value his

service offers compared to his competitors.

Cutting prices devalues your product. It is

more effective to show how your price equals

the value you are promising. Karim should

have asked the buyer what he was looking

for and then matched that with his service

offering and price. The prospects, in this way,

feels like they are buying what they want

or need and the sales team can achieve its

objective.

Don’t cut prices more than once:

If cutting prices the first time is “the

bad”, then cutting the price a second time is

definitely “the ugly”. In reducing your fees,

you are no longer only devaluating your service

but you are also devaluating your industry

across the market. Karim should have matched

the quality of his services or brand with the

prices and stuck by them.

Jennifer Baxavanis is the Managing Partner of BAX Consulting LLC, which is a sales and training consultancy that helps clients increase their top line. The services are mainly based around sales approach and sales process. BAX Consulting is registered in the USA and in the UAE, with international clients. It is currently specialising in security, occupational health and safety, media, healthcare, and oil/gas sectors. For more information about BAX Consulting visit www.baxllc.com .

About

Always remember that the customer is the expert: The more you find out about your customers’ drivers, needs, and objectives, the more you can match those with your service offering and use the information as product development research.

1

2

3

4

Jennifer Baxavanis

What does this mean for your business?In looking at Karim’s experiences in sales,

we can learn some lessons for SMEs that are

managing a sales team of 1-20 sales persons.

Here are some tips:

• Don’t hire or fire your sales team – Empower

and capacitate them with sales process

training, in the classroom or on-the-job.

• Offer incentive schemes – Keep them

selling and seeing customers face-to-face.

• Learn how to resolve the price vs. value

objection-

a. Before the meeting, make sure your

pricing is competitive. Ask yourself:

Is my service or pricing similar to my

competitors? If the answer is “no”,

ask yourself if you are offering a

bespoke service that makes it more

expensive or a simpler service that

makes it less expensive.

b. In your sales meetings, ask the

prospect what they are looking for

in your service and compare it to the

fees you are charging.

• Always remember that the customer

is the expert – The more you find out

about your customers’ drivers, needs,

and objectives, the more you can match

those with your service offering and use

the information as product development

research. Deals are closed when your

service offering matches your prospects’

needs, budgets and timing.

42 february 2012

partnership opportunitiesPrivate Sector (al kitaa al khass) is an arabic and english magazine, presented and supported by Qatar development bank (Qdb) and published by cpi. it is aimed at business owners and senior executives in the private sector in Qatar. armed with practical advice, it highlights key issues for the business community.

The driving force for regional economies is the private sector – a catalyst for growth, development and job creation. with the world’s spotlight on Qatar’s development activities and the buzz being created around 2022, this sector is going to grow by leaps and bounds. that’s great news if you’re targeting the private sector, which spans across almost all industry verticals, but the problem you face is identifying the most dynamic and competitive companies amongst a sea of competitors.

a key answer for the past half decade has been cpi’s uae-based magazine SME Advisor Middle East, which has delivered valuable business information to leading smes across the region, helping them develop their businesses, putting them in touch with valued partners and fuelling growth even in a stalled global economy.

for more information about advertising and other partnership opportunities, please visit www.privatesectorqatar.com/enfor marketing ideas and opportunities, please contact [email protected] or [email protected]

now, with the support of Qdb as our presenting partner, we have launched the same business values, tailor-made for Qatar in the form of the brand Private Sector. this will encompass magazine, events, online and several other initiatives to drive Qatari entrepreneurship and the private sector.

This is your chance!this is a market you cannot afford to miss. this is a market that you can reach in an intelligent, focused way, working with the expert team that brought you SME Advisor Middle East and has now launched Private Sector magazine in Qatar.

44 february 2012

When leaders learn the dynamics of communication and

acquire the skill of versatility to get their messages across to different personalities, the effectiveness and productivity of everybody in the team rises.

Recent research shows that versatility

is one of the most important skills for

creating a high-performance organisation.

It influences all the interactions that occur

within organisations, and between an

organisation and its customers

Leaders with high versatility have

employees who exhibit greater work

satisfaction and higher performance.

Versatility improves global relationships.

A study of over 150,000 people

from 20 different countries showed

that organisations with higher levels

of versatility had more effective

relationships with global partners. In sales

organisations, high levels of versatility

create higher revenues, greater market

share, and better client relationships.

What is versatility?In any business relationship there are two

primary sources of tension-task tension

and relationship tension. Task tension is

useful; it motivates work. It is the need

to solve a problem or reach a decision.

Relationship tension is not useful as it

is the result of lack of information or

miscommunication and causes discomfort

in a relationship, leading to business

inefficiencies.

When time and energy are directed

toward relationship tension, less energy

is available to address the task tension.

That is, the more effort people have

to put into the relationship because

of different communication styles,

preferences, or expectations, the less

effort goes toward accomplishing the

business objective.

Every business, no matter how global or local, relies on

communication to get things done. Yet only a small percentage

of companies actually invest in teaching their employees how to

communicate. Leaders are particularly vulnerable to being criticised

for misunderstanding communication subtleties and for inadequate

presentation of their ideas. Stephan Melchior, Managing Partner,

Wilson Learning Middle East, shares some pointers on the ability to

see and understand different perspectives.

ThE iMpORTaNCE OF BEiNG FLExiBLE

management

45february 2012

management

How to be more versatile?A person’s style tends to be very stable

over time. In contrast, versatility is a skill

that you can learn and improve. Versatility

is the ability to temporarily adapt one’s

behaviour in order to reduce relationship

tension and to make interactions with

others more productive. In a recent study,

Wilson Learning interviewed leaders and

their employees about effective leadership.

The results show that leaders need to

pay attention to a number of factors to

increase their versatility.

So what defines a good leader? You may

think you know what makes a good leader,

but you are looking from the perspective

• Drivers value a leader with a direct

approach; be prepared with desired

outcomes and timelines.

• Expressives want a leader who is open

and trusting, and shows empathy for

the employee loses the ability to use his

or her personal discretion.

• Expressives do not like leaders who are

closed-minded, who see only one way

to approach an issue and are closed to

discussing other options.

• For Amiables, not expressing personal

concern and interest in employees is

one of the most common weaknesses

in a leader.

• Analyticals dislike leaders who provide

too much or too little information.

Analyticals don’t what to be told

irrelevant things, but also dislike

information gaps.

In any business relationship there are two primary sources of tension – task tension and relationship tension. Task tension is useful; it motivates work. It is the need to solve a problem or reach a decision. Relationship tension is not useful as it is the result of lack of information or miscommunication and causes discomfort in a relationship, leading to business inefficiencies.

To be an effective leader, you need to be aware of the styles of your employees and how they perceive effective leadership. For example, an analytical leader, who does not express empathy and openly share feelings, may not be seen as a good leader by everyone.

Stephan Melchior

of your own style. Different styles focus

on different characteristics to define a

good leader. While all styles agree that

good leaders give clear objectives and the

autonomy to carry them out, there are

important differences.

others’ feelings; be prepared with a

big-picture vision of what you want

accomplished.

• Amiables want a leader who shows

confidence in them; be prepared with

how you will trust them.

• Analyticals value a leader who is

knowledgeable about the business and

shares information freely; be prepared

with specific goals and resources for

getting the job done.

To be an effective leader, you need to be

aware of the styles of your employees and

how they perceive effective leadership. For

example, an Analytical leader, who does

not express empathy and openly shares

feelings, may not be seen as a good leader

by everyone.

What are leaders’ greatest weaknesses?

While all employees expressed that

micro-managing is a common weakness, each

style described specific characteristics that they

also consider weaknesses in a leader.

• Drivers dislike leaders who give too

much or too little direction. Too little

makes the task vague; too much and

An effective leader needs to match the

amount of information, direction, and

expression of concern to the style of individual

employees.

How do leaders support employees? All

employees need support from their leaders

and all agreed that receiving advice and

removing organisational barriers is critical,

but the specific support employees need

and expect varies by their style.

• Give advice to Drivers, but do not do the

task for them directly. Drivers need the

freedom to solve problems themselves

and they resent direct intervention.

• Expressives need a sounding board;

someone who is open to discussion and

is non-judgmental. They want a leader

who supports and backs up their idea.

• Amiables want a leader who acts as

a guide; who points them down the

right path, expresses confidence in their

choice, and suggests small corrections

along the way.

• Analyticals value clear and full

acceptance of their decisions and direct

feedback, when they go off track.

Stephan Melchior has been working in the learning and development field for more than 15 years; designing and delivering training programmes in more than 20 countries. He is well known for the graphic facilitation approach he uses in his courses. Today, Stephan is Managing Partner at the Middle East office of Wilson Learning Worldwide, based in Dubai Knowledge Village. As a global organisation, Wilson Learning is the founder of the Performance and Fulfillment concept, and was rated among the Top 20 Leadership and Sales Training companies in 2010 and 2011 (www.trainingindustry.com). Wilson Learning Middle East was also recently ranked among the TOP100 SMEs in Dubai.Wilson Learning Middle East can be contacted at [email protected].

About

management

46 february 2012

Effective leaders provide support based

on their employees’ preferences. and are

aware of their own tendencies and vary

the kind of support they provide.

When are employees ready for more

responsibility? One of the greatest

mistakes leaders make is not recognising

when employees are ready to step up to

new challenges and greater responsibility.

Leaders often make assumptions about

when employees are ready, based on their

own style.

• Driver and Analytical leaders tend

to think employees are ready for

more responsibility when employees

repeatedly exceed expectations on

current tasks. They often give high

performers more responsibility without

checking to see if the employee agrees

that he or she is ready.

• Expressive and Amiable leaders rely on

employees to tell them that they are

ready for additional responsibilities.

Thus, employees who perform well

and ask for more responsibility are

more likely to get promotions and

advancement than those who just

perform well.

is the lack of sensitivity to global diversity.

While versatility is a skill that can be learned,

it is also a reflection of a leader’s values and

principles. Less versatile leaders take the

perspective that others must adapt to them,

that it is “my way or no way.” They surround

themselves with people who think the same, act

Leaders need to involve employees

in this decision. Analytical employees

may repeatedly exceed expectations

and expect a promotion, but will not

receive it because their Expressive leader

is waiting for them to ask for more

responsibility. As a result, that leader

may lose a high performer.

Dare to be differentEffective communication is critical, both

for the success of the organisation and

the success and satisfaction of employees.

The most common reason people give

for leaving a job is poor communication

with their manager. The most common

reason customers leave suppliers is, poor

communication with the sales force. And the

most common reason global negotiations fail

A person’s style tends to be very stable over time. In contrast, versatility is a skill that you can learn and improve. Versatility is the ability to temporarily adapt one’s behaviours in order to reduce relationship tension to make interactions with others more productive.

the same, and communicate in the same way.

In contrast, highly-versatile leaders embrace

diversity in all its forms – they surround

themselves with people who are different; who

bring different perspectives, different ideas,

and different ways of expressing themselves.

Versatile leaders use this diversity to grow their

organisations and themselves. Versatility is critical

to effective leadership performance and it will

help leaders to practice it in their organisations.

marketing

pLayiNG TWO MOvES ahEad

How much time do you spend on Facebook, Google or YouTube every day? How often do you

drift into e-mail trance while using your SmartPhone? It’s quite remarkable when we think about how much things have changed over the past decade because of these technologies, which are now an integral part of our daily lives.

With customer attention shifting from traditional billboards and yellow pages to new digital media, such

as search engines, social networks and mobile applications, businesses must adapt so that they can

continue to provide value and remain relevant, says Abbas Alidina, Founder and Director of Logicks.com.

Getting started with digital marketingMany businesses make the mistake of diving

head first into developing a Website, opening

social media accounts, or, creating mobile

applications for their business without any

coherent digital strategies. This juncture

actually represents an opportunity to take

a step back and look at the bigger picture.

What are your intentions? How do you aim to

improve the customer experience? What will

differentiate you from competitors?

Plan for successFailing to plan is planning to fail. Identify

which business goals you aim to achieve with

your online presence. For instance;

• Increase the number of inquiries received.

• Boost sales.

• Build a community of enthusiasts around

your brand.

• Decrease the volume of inbound customer

support calls.

These objectives should be captured as early

as possible. Gaining clarity on your business

goals from the onset will help you to remain

focused on driving customers towards your

desired outcomes as they interact with your

brand.

Research your industry Before launching a digital marketing

campaign, it is critical to determine whether or

not a market actually exists for your products

or services online. Ask yourself;

• Where do your customers “hang out”

online?

• What languages do they speak?

• What other interests do they have?

Investing significant time and money on digital

marketing, only to realise that your targeted

audience is elsewhere can be demoralising to

your business.

48 february 2012

marketing

0% 20% 40% 60% 80% 100%Yemen

United Arab EmiratesSyria

Saudi ArabiaQatar

PalastineOman

LebanonKuwaitJordan

IraqIran

Bahrain

At a macro level, the level of

Internet penetration across the

Middle East varies drastically

by country. The overall Internet

penetration across the Middle

East region is an average of

28.5%, so each country is at a

different level of online maturity.

This should be taken into

consideration when developing

your digital marketing strategy.

Internet penetration by country in the Middle East

Understand consumer behaviourIf you can understand your audience, you are

better positioned to reach them effectively. The

Internet is a rich data repository. Digging deeper

into this information minefield in a structured

way will help you to learn about your customers.

Here are two free tools to help you get started:

Google trends: This valuable tool illustrates

how often people have searched Google

for specific search-terms over time. You can also

filter the results by region, city and language. By

entering search terms related to your products

and services, you can gauge the level of online

activity that is relevant to your business.

Twitter search: Whereas performing a

Google search will return the ten most

authoritative Websites on specific keywords,

performing a Twitter search will return the ten

most recent Tweets containing your keywords.

You can start monitoring conversations and

find out what your customers and prospects are

talking about.

There are a number of additional free and paid

tools available online that will help you to study

your market from varying perspectives. Every

business should at least begin to experiment

with these tools and see how they can learn

from the data.

1

2

The beauty of the Internet is that it represents

the ability to study and organise behaviour,

sentiment, perception, activity, impressions and

experiences, and that’s remarkable when we

actually stop to think about it.

The customer engagement cycleThe customer engagement cycle illustrates

the stages that customers and prospects pass

CustomerEngagement

Cycle

through as they experience your brand. For

a moment, take off your marketing hat and

start thinking like a customer. Develop your

digital marketing strategy based on the entire

customer experience.

Ask yourself what customers require at each

stage of the customer engagement cycle with

respect to your specific industry.

49february 2012

By gaining clarity on your business goals from the onset, it will help you to remain focused on driving customers towards your desired outcomes as they interact with your brand.

Take off your marketing hat and start thinking like a customer. Develop your digital marketing strategy based on the entire customer experience.

Stage descriptionawareness Customers have not previously heard of your brand, products or services. You need to make a good first,

second and third impression so that they consider you when they are further along the engagement cycle.

consideration customers are looking for information so that they can research and compare between competitors and offerings. Communicate your value proposition to them and build up confidence in your brand so that they will purchase from you.

purchase customers are busy people and want to make the purchase in a way that is convenient for them. be as flexible as possible and make it simple and straightforward for them to make the purchase.

support customers want to purchase from brands that will provide good service and support. make sure to support them with any issues, questions or complaints they may have.

loyalty customers like to be appreciated and rewarded for the business they are providing you. offer recognition and incentives for loyal customers.

advocacy customers who are happy with the experience they encounter with your brand are likely to recommend you to their peers. empower them with the ability to easily spread the word on behalf of your business.

Each of these stages represents the opportunity to

form a deeper relationship with your customers.

The customer engagement cycle is a chain and

you are only as strong as your weakest link. Any

breakage along the chain means that you are

losing customers as they pass through it.

Industry insightsWe are witnessing a rapid rate of growth in digital

marketing spending across the globe. According

to research conducted by Econsultancy

(http://econsultancy.com/reports/the-state-of-

digital-in-mena), it was found that 58% of

Budget and allocate resources wiselySpending the majority of your digital marketing

budget to develop a flashy Website with all

the bells and whistles is not the most effective

way to connect with customers online. Even if

you have the most beautiful Website around, if

customers are not visiting it then you might as

well be offline.

Whether you are performing the digital

marketing activities in-house or outsourcing to

an agency, it is critical to ensure that you have

an experienced team who has demonstrated the

ability to get the job done.

While it is quite inexpensive or even free to

establish a presence on the majority of online

platforms, such as Google or Facebook, time and

resources do carry fixed costs. The results that you

can achieve through digital marketing are directly

related to the level of commitment that you are

willing to invest in it.

are increasing their digital marketing budgets are

doing so by an average of 28%.

Businesses have realised that customer attention

is not only scarce, but also scattered. There is an

oversupply of platforms, especially in the digital

world. Customers are focused on search engines,

social networks, e-mail and mobile phones

amongst others. Businesses must adapt to these

changes in consumer behaviour and participate in

the places where customer attention is focused.

Abbas Alidina is the Founder & Director of Logicks.com, a digital marketing agency that helps businesses across the Middle East to improve their online performance. With more than ten years of digital marketing experience, he has developed strategies and executed projects for numerous global and regional brands.For more information please visit http://www.logicks.com or follow Abbas on Twitter @AbbasAlidina.

About

companies in the Middle East & North Africa

are increasing their digital marketing budgets

this year compared to a 43% increase in overall

marketing budgets. Furthermore, companies who

marketing

50 february 2012

Abbas Alidina

technology

pROTECTiNG yOuR MOBiLE dEviCESAndy Cordial, Managing Director, Origin Storage, explains why mobile

computing users need to raise their security game if they are to avoid a

series of SmartPhone and tablet computer-driven data breaches.

While the range and variety of IT security defences for portable devices is

excellent, and able to cater for all budgets and types of user, it should be apparent to any security observer that the same cannot be said for SmartPhones and tablet computers.

With 45 million iPads already having

been sold, and with the prospect of

Android tablets and BlackBerry tablets

also selling in their millions, it’s clear that

IT security professionals working within

companies of all sizes have a security

problem on their hands.

With most business using one or more

mobile devices with a variety of e-mail,

documents and contact details in their

memory, it is clear that SmartPhones and

tablet computers should be afforded the

same levels of security and protection as the

laptops and netbooks in circulation.

And the line between portable computers

and mobile devices, such as SmartPhones

and tablets is becoming blurred.

The question facing the hard-pressed IT

security manager is, how in the face of a

paucity of tablet and SmartPhone-specific

security offerings, and a general apathy

amongst corporate users, to get the mobile

security focus back on track?

According to a report from the

CNCCS-Spain’s National Cybersecurity

Advisory Council, a general lack of security

awareness amongst mobile users and their

carelessness are the two main risk factors for

SmartPhones in business.

The research recommends that users should

take all necessary precautions when opening e-mail

messages, SMS attachments or clicking links.

Users should also be wary of any files,

links or numbers received from unsolicited

e-mail or SMS messages, and avoid using

untrusted WiFi networks.

The CNCCS report confirms many of the

findings of Origin Storage’s survey of IT security

professionals, the survey pointed out that

41% of IT professionals are carrying sensitive

information on their SmartPhones.

Against a backdrop of 19% of respondents

revealing their employers had suffered a breach,

as a result of a portable device going missing,

and more than half of those respondents

revealing that the portable device was not

encrypted, it is clear that something has to be

done.

What was interesting about the results of

the survey was, that 70% of organisations

had made data encryption mandatory in their

businesses, suggesting that many users of

portable devices are breaking their own firm’s

security policy rules in their day-to-day business.

This apathy also perhaps explains the

fact that 37% of respondents admitted that

between four-fifths and all of their sensitive

data stored on their portable devices was

unprotected.

It’s interesting to note that this proves the

case that we are not just dealing with a few

files copied to a portable device in a hurry here,

52 february 2012

perhaps by an employee who is

late for an off-site meeting. This

is a failing in corporate security

policies and their implementation.

So what is the solution to the general

apathy surrounding the use of portable devices,

and especially Internet-connected devices such

as tablet computers and SmartPhones?

User education, while desirable, plainly isn’t

working, as most corporate users of technology

are probably aware of the security risks posed

by their laptop computer.

technology

The question facing the hard-pressed IT security manager is how, in the face of a paucity of tablet and SmartPhone-specific security offerings, and a general apathy amongst corporate users to get the mobile security focus back on track?

According to a report from the CNCCS, Spain’s National Cybersecurity Advisory Council, a general lack of security awareness amongst mobile users and their general carelessness are the two main risk factors for SmartPhones in business.

and for the affected company’s reputation and

share price to take a consequential battering,

before something’s done.

There is nothing like a share price dip of

8 to 10 % to focus the attentions of a CEO

and CFO, and to pressure the IT manager

into deploying sound security solutions

and practices to stop an incident from ever

happening again.

The irony of this situation will not go

unnoticed amongst those IT professionals, who

are reading these words and whose experience

dates back to the 1990s, when desktop and

laptop security was in a similar evolutionary

stage as mobile security is today.

Here at Origin Storage we have been doing

our bit as well, with a one terabyte version of

our data locker secure encrypted hard drive

selling well since it was launched at the tail

end of 2009.

And in the spring of last year, when we

released a range of encrypted hard drive

kits allowing computer users to install a drive

in their desktop and laptop machines. This

drive will encrypt data on-the-fly, and migrate

their data from the old drive at the same time.

The process will, however, take time.

Changing portable device user security

behaviour is a task similar to steering an giant

oil tanker. All changes of course need to be

planned some way in advance, but once

executed can be relied up on to take effect

over a period of time.

And while today we have regulatory

influences, such as the Data Protection

Act and the PCI DSS rules applying to any

business that stores personally identifiable

information card transactions, the fact that the

Information Commissioner’s Office has only

rarely prosecuted an organisation for a breach

of the DPA, means that the stick approach will

not work.

So what about the carrot approach? That

too, sadly, is probably doomed to failure, so we

are left with the need for governance and the

tapping of hardware plus software resources

to help enforce best practice in the mobile

security arena.

Andy Cordial is the Managing Director of Origin Storage. He started his computer industry career in 1987 working for tape manufacturer Everex Systems. He then moved into computer distribution in 1989 and set-up his first computer company XL Distribution. XL merged with Datrontech in 1992 where he worked in their management team. Andy saw Datrontech through flotation on LSE then left to start Upgrade Options plc in 1996. He went on and sold Upgrade Options (MBO) in 2003 and invested in Origin Storage Ltd. Andy helped build Origin Storage to a GBP 5.2 million business and saw it enter the Times Fast track 100. He now owns 100% shareholding of Origin after successful purchase of his partner in 2009.

About

And, as any mobile user will attest, security

is rarely on the agenda of the dealers and

cellular networks, that are busy promoting

and selling their handsets plus mobile phone

contracts. It’s a non-starter.

It’s against this backdrop that we are left

with the stark reality that it will probably take

a series of major corporate blunders involving

sensitive data lost, as the result of a lapse of

security in a tablet computer or SmartPhone,

53february 2012

Andy Cordial

corporate life

Meeting and greetingRemember that your goal when you first meet

someone is to put them at ease and make them

want to do business with you.

• Stand up to greet them, so you can show you

respect them.

• Smile; facial expressions convey more than

words.

• Always establish eye contact to show you are

focussed, but remember, the idea is not to

stare them down.

• Offer a firm handshake. If in doubt about the

appropriateness of this form of greeting, like

when meeting someone from the Middle East,

wait for them to offer to shake hands first.

• Pay attention to names; if you repeat the

name as soon as you have heard it, you

will be more likely to remember it. There’s

nothing more embarrassing than not being

able to recollect the name of someone you’ve

just struck a deal with! Quick tip; Place their

business card strategically on the table in

front of you during the meeting.

Entertaining business associates • Table manners say a lot about a person, so it’s

crucial to get them right.

• The golden rule when faced with a mass of

cutlery is to work from the outside in.

• Don’t order messy food that is difficult to eat.

• Hail your waiter/waitress by making eye

contact and discreetly waving your hand.

• Before sitting at the table, wait for your host

to sit first or for instructions to sit.

• At a networking event, hold your drink in

your left hand to keep your right hand dry

and available for handshakes.

• No matter how much you want to speak,

never talk with your mouth full.

Dressed for success – female executivesThey say a picture is worth a thousand words, so

the “picture” you first present says much about

you. Ask yourself whether your appearance is

saying the right thing to help create a favourable

first impression.

• Respect the local culture and general good

sense, and don’t wear anything revealing.

• Avoid wearing strong perfumes or smelling of

smoke.

• Maintain neat and clean hands and nails with

regular manicures. Try and keep it professional

and save the psychedelic nail paint for a

non-work party.

• Keep your make up and hairstyle simple and

appropriate.

• Keep your accessories conservative, classic

and business-like. This is not the time to

unleash your inner disco queen!

Dressed for success – male executivesAppropriate grooming not only helps you make

a good first impression, but also helps you

feel “the part”, which will help you be more

confident.

• Err on the side of caution; it’s better to be

slightly formal than too casual.

• Ensure you wear a well-fitted suit. We are

spoilt for choice these days, but it’s always

better to invest in a few high-quality suits than

many cheap knock offs.

• Ties should command respect, not give

the onlookers a migraine. Take the time to

master the art of tying the perfect knot and

never wear novelty ties – unless you’re in the

media, advertising or showbiz.

• Keep your hairstyles short and neat, and any

facial hair trimmed – unless you’re in the

professions I just mentioned. It’s not fair how

some people can get away with protocol

murder!

• When choosing a bag, nothing beats leather,

be it a formal briefcase, a trendy messenger

bag or a handheld portfolio. Invest in a good

cut and finish.

• Avoid jewellery and opt for a bit of subtle

bling with some stylish cufflinks.

How to impress • Be on time; try to arrive for engagements a

few minutes early and plan for traffic delays.

• Be yourself; a calm and confident demeanour

will help others feel at ease.

• Small talk goes a long way; learn about a

person before meeting them so you can easily

start a conversation and keep it flowing.

• Be positive; your attitude shows through in

everything you do.

• Be courteous, attentive and polite at all times.

Many of these tips are simple and obvious,

yet are all too often overlooked. You have one

chance to make an impression, so make it

count!

SEaL ThE dEaLYou have just a few seconds to make that first impression and you get

only one shot at it. This month, Guillaume Mariole from Ignite Fitness

& Wellness shows that, with a little thought and preparation, you can

make some smart choices.

Guillaume Mariole is the Managing Director of Ignite Fitness & Wellness. For more information, visit www.ignite-wellness.com, or e-mail [email protected].

About

54 february 2012

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