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2 Qatar Today AUGUST 10

AUGUST 10 Qatar Today 3

AUGUST 2010

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The Leapof LuxuryLuxury goods, as a symbol of success have often been the torch bearer for conspicuous consumption. You have it, and you want people to know that you have it. By their very nature, high-end goods can eat up just about any percent-age of your disposable income you can afford to spend, but you have to have the money. There are, however, other factors to consider in how sales of luxury goods are defined.

How are retailers of luxury goods performing in the Qatari market? What challenges are retailers facing, and how are they facing them? What, also, of the aforementioned ‘other factors’? Qatar Today spoke to a number of distributors of luxury brands to find some answers.

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Take your pickRobert Broadwell, Vice President at asset management firm BlackRock, is meeting institutional investors in Doha about the firm’s ‘iShares’ product, for which he is Head of Sales for the GCC. Qatar Today meets Broadwell to learn about iShares and its relevance to Qatari investors.

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“reaL esTaTe, The direcT conTribuTor To debT crisis”Naveed Siddiqui, the CEO of Capitas Inter-national has an enviable record in launching multiple Islamic mortgage and specialty fi-nance businesses. He talks about the finan-cial climate of the country, and believes the crisis is still not over.

iTs own kind of capiTaLQatar is, undeniably, on the rise, and Doha is well on its way to becoming a cultural and economic centre for the Middle East re-gion. But if it wishes to reach the top – to become the centre – it will have to beat quite a string of contenders for the crown, writes Oliver Cornack.


AUGUST 2010

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asseT aLLocaTion in The ‘new normaL’In the ‘new normal’ which applies to investing today, the mix includes not just equity, bonds and cash but al-ternative types of assets too, writes Douglas Hansen-Luke.

are you an a-pLayer? TargeT an a-empLoyer Will you simply go with the flow and jump at the first job opportunity that comes your way? Don’t you classify yourself as an A-Player who is entitled to work for an A-Employer? Shouldn’t you look for a company that has what it takes for an A-player such as yourself to want to join its ranks?

Turkey: The paTh of reTurnTurkey is in the cynosure in the Arab world following the aggression on its Gaza-bound flotilla. HE, Emre Yuntthe, the Turkish Ambassador to Qatar on how the country is seeking to strike a balance.

exec TrainingThe making of a LeaderThere is no substitute for the wisdom that comes from experience – in good and bad times. It is estimated that more than 85% of an Executive’s career learn-ing will come from on-the-job learning and real life experience. Dr Brendan Mc-Cann helps young executives excel in their roles.

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News Bites.................................08Realty Check..............................14O&G Overview..........................20

Bank Notes.................................22Arab Snippets.............................28World View.................................30

Braking News.............................58Market Watch..............................64Doha Diary..................................74

managing empLoyees of differenT generaTionsShould companies take different ap-proaches to manage employees of differ-ent generations? A Gallup study suggests that employees’ level of job-engagement may not be age-related.

buenos airesmore Than jusT fair windEntertainment, sports, good food and a nice group of people to hang out with – Argentina attracts just about two million tourists annually. For the eighth-largest nation in the world with the kind of attractions it has to offer, that’s too few.

Now Qatar Airways flies daily to Bue-nos Aires, so planning a trip to that part of the world is going to be that much easier.

inside: cgc nokia producT bookLeT

reguLars


Publisher & Editor-in-Chiefyousuf jassem aL

darwish

Chief Executive Officersandeep sehgaL

Executive Vice PresidentaLpana roy

Vice Presidentravi raman

Managing Editorvani saraswaThi

Deputy Editorsindhu nair

Assistant Editorsahmad LoTfy aLi

john hunT

Editorial Coordinatorcassey oLiveira

ContributorshaLinee bharadwaj

Art DirectorvenkaT reddy

Asst Director – ProductionsujiTh heenaTigaLa

Assistant Art Director hanan abu saiam

Senior Graphic Designersayush indrajiTh

sampaTh gunaThiLaka

Managers – Marketingmohammed samiZuLfikar jiffry

Senior Media ConsultantchaTurka karandana

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Address all your correspondence to Qatar Today, Oryx Advertising Co WLL, P.O. Box 3272; Doha-Qatar. Tel:(+974) 44672139, 44550983, 44671173, 44667584, Fax:(+974)44550982, email: [email protected]. All rights reserved. no part of this publication may be reproduced without the written permission of the publisher. The publisher does not accept responsibility for advertising contents. Licensing/Republishing QT content: To obtain permission for text syndication in books, newsletters, magazines, newspapers and web or to use images/pictures carried in Qatar Today, please contact our syndication & licensing department on the numbers given above. Permission is also required to photocopy a QT article for classroom use, course packs, business or general use. Custom reprints: Any of the previously published article/s to be used as stand-alone pieces can be reprinted by us on special request. The reprint cost is based on the length of the article and the quantity ordered. Contact our custom publishing division on the numbers given above for more information. Previous issues (FEBRUARy 2004 onwards) of Qatar Today are available for sale, contact our Library department. To subscribe to Qatar Today call our subscription department on the numbers given above.

FROM ThE DESk

VOLUME 36 iSSUE 08 AUGUST 2010

Let them eat cake?When lay-offs and cutbacks are uppermost in peoples' minds, why are we talking about the sway of luxury brands? Because in the worst of recession or even in times of conflict, the lure of the good stuff is too strong to resist. Maybe the frequency or quantity of pur-chases may be affected a tad, but few are going to go cold turkey on the good life.The per capita GDP has dipped by 11% in Qatar, and consequent-ly, people have had to rein in their spending for most of 2009. This year, things are beginning to look up, and if not just yet, soon enough the customer will be hitting the stores with a vengeance and swiping plastic with great abandon.We speak to key players in the luxury retail section to find out how and when the turnaround will happen.Keep in mind though, wise investments are just as important in good times as in bad. Exchange Traded Funds seem to hold prom-ise in that regard. We speak to Robert Broadwell, Vice President at BlackRock, to learn more about this.In our regional coverage, we speak to the Turkish Ambassador to Qatar, His Excellency Emre Yuntthe, on the Gaza aid ship crisis, and the critical role his country played in the entire drama. It's not all about economic doom, geo-politics and brands we can't afford now. Take your mind off the grave stuff, and start planning your next holiday. To Argentina, perhaps?Ramadan Kareem!


The winning number of ThelasT QT poll is 66738174

QATAR TODAy inViTESREADERS’ FEEDBACk

Share your views on the magazine or any issue connected to Qatar. One lucky reader will win an exquisite Mont Blanc writing instrument.

Write to:The Editor, Qatar Today, PO Box 3272, Doha.

Fax: (+974) 44550982, email: [email protected]

Qatar Today reserves the right to edit and publish the correspondence. Views and opinions expressed in the published letters may not necessarily be the

publication’s views and opinions.

Social Media ChallengeThe cover story on Social Media Corporate Challenge in the July issue of Qatar Today was commendable. Through well-written articles it pro-vided an exhaustive insight into the status of the corporate world with respect to the social media which is now the lifeline of our commu-nity. Qatar’s market is posed with the twin challenges of learning and adapting to the social media as well as coping up with the demands of a multi-cultural, computer-savvy populace. It is about time the corporates sat up to the changing face of the potential consumer.

Steve Gavin

Blowing your own trumpetWhile the cover story was informa-tive and comprehensive, two articles in the ‘Tag This’ section also find ap-preciative mention - ‘Market yourself at your workplace’ and ‘Press 1 for Arabic and 2 for English’. While working in the office, quite of-ten we forget the significance of per-sonal relationships, not only with the boss but with our colleagues as well. To project a positive image, with

work it is also important at times to blow your own trumpet while main-taining a tolerant audience.

Kiran Rastogi

Youth PotentialThe article on Ahmed Ashour, of Al Jazeera Talk, presented the immense potential our youth has. The fore-sight, planning and implementation shown by Ashour is truly inspiring particularly so, in the challenging arena of reporting and journalism. The feature on ‘Silaqual’ was also informative, more so in the current wake of immense employment op-portunities generated and presented in the region.

Waleed Ibrahim

Luxury brands winThe July issue of Qatar Today was contemporary in style and content. While informing about the impact and demands of social media on the consumer market, it also brought out the power packed potential of youth into picture. Featured luxury brands in the Market Watch are suggestive of Qatar's posi-tion as a global elite market.

Yasmin Raheem

...letters [email protected]

Check out select articles of Qatar Today onwww.explore-qatar.com

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newsbiTes


h ot on the heels of the World Cup in South Africa, FIFA has kicked off a whirlwind two-month tour to inspect nine candidates vying

to host the 2018 or 2022 tournaments, the first stop in Japan. Qatar's bid for the 2022 tournament will be the last to come under the scrutiny of the inspectors when

they arrive in Doha in mid-September.A five-member team from the sport's

world governing body arrived in the western city of Osaka on a four-day trip to see stadiums, facilities and presenta-tions there and in Tokyo. They will go on to South Korea, Australia, the Neth-erlands/Belgium (who are making a joint

bid), Russia, England, Spain/Portugal, the United States and, finally, Qatar and draw up reports on the feasibility of each bid. FIFA's 24 executives will then choose the 2018 and 2022 World Cup hosts on December 2 in Zurich. The inspection team is led by Chilean Football Federa-tion President, Harold Mayne-Nicholls, who said, “I hope that after all our visits, we'll be able to hand the FIFA members a very objective report to help them take their decision.”

Japan, South Korea, Australia and Qatar – all members of the Asian Football Con-federation (AFC) – have submitted bids for 2022 only, while the others are seeking to host either 2018 or 2022. If Europe gets 2018, the continent will be excluded from the 2022 race. AFC President, Mohamed Bin Hammam expressed his support for Europe's 2018 bid in June and underlined his determination to see an Asian country win the right to host the 2022 tournament.

16.“REAL ESTATE, ThE DiRECT COnTRiBUTOR TO DEBT CRiSiS”

Vodafone Qatar (VQ) last week welcomed ictQATAR’s – the country's telecommuni-cations regulator – decision in response to VQ’s complaint against Qtel’s introduc-tion of the Virgin Mobile (VM) brand in Qatar in May of this year.

In the decision, ictQATAR determined that VQ was correct in its complaint that Qtel had violated the Qatar telecoms law and misled consumers by their introduc-tion of VM to the Qatari market.

In making this decision, ictQATAR has used a new dispute resolution process which requires all decisions to be made in

a transparent, consultative and evidence-based manner in accordance with the rules and requirements of the Telecommunica-tions Law (Decree Law No 34) 2006. This process is consistent with what Vodafone is subject to in other countries with leading national telecommunications regulatory frameworks.

VQ has noted that ictQATAR has re-quested Qtel to significantly alter how the VM brand in Qatar is represented com-pared to what was launched in May. VQ is reviewing ictQATARs decision to de-termine if they will take further legal ac-

tion to rectify the impact of Qtel’s illegal behaviour on their organisation and share-holders. VQ will also monitor Qtel's com-pliance with the new brand requirements.

Commenting on ictQATAR's decision, H E Sheikh Abdulrahman bin Saud Al-Thani, Chairman of VQ, said, “Vodafone Qatar complained to ictQATAR about Qtel’s introduction of Virgin Mobile be-cause we believe Qtel was engaging in activities against the law and against the interests of our shareholders. We believe that the ictQATAR decision confirms we were right to make this complaint.”

FiFA inSPECTORS kiCk-OFF ViSiTSTO WORLD CUP BiDDinG nATiOnS

VODAFOnE QATAR SEES SOME VinDiCATiOn OVER ViRGin MOBiLE EnTRy

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Qatar Airways has signed a $122 million (QR444 million) deal to buy two Global 5000 executive jets and a Challenger 605 from Canadian manufacturer Bombardier at the Farnborough Air Show in the Unit-ed Kingdom. The aircraft will join three other jets in the Qatar flag-carrier’s Qatar Executive fleet when they are delivered in October this year and August next year.

The airline's CEO, Akbar Al-Baker, said that the move was part of a sustained focus on corporate travellers, as opposed to the interest the budget sector is enjoy-ing elsewhere in the region.

“Despite the current global economic climate, there remains a strong need for corporations to conduct face-to-face business meetings in the shortest pos-sible time and with a hassle-free travel experience,”Al-Baker said.

The 13-seater Global 5000 jet can reach most destinations in Europe, Asia and Africa without refuelling. However, there was some surprise at Farnborough that Qatar Airways had not placed a far more valuable order for Bombardier’s C Series narrowbody type, which as yet has no launch customer.

It was reported that Al-Baker was still hammering out the details of a potential deal with Bombardier, and had not been able to reach an agreement in time to make an announcement at the air show. Meanwhile, the carrier – with $35 billion (QR127 billion) worth of planes on or-der – will be sticking with its expansion plans despite mounting evidence that global growth in the air industry is set to grow. “At a time of gloom, global reces-sion and financial crisis, we are adding 15 destinations, we take gambles,” said Al-Baker.

qatar is on course to lead the re-gion in terms of infrastructure projects in the short-term despite a near-22% slump in its construc-

tion sector last year, says a report from Business Monitor International (BMI).

BMI said in its Q3 Infrastructure Re-port that it remained optimistic that Qatar would outperform other countries in the region to 2014. Despite new data which revealed a big drop in its construction in-dustry in 2009 after three years of rapid growth, BMI analysts said Qatar was still

one of its top markets in the Middle East.The Gulf state's construction sector value

fell to just above $7 billion (QR25.5 billion) in 2009, a real contraction of 21.8% said BMI. “Despite these figures, BMI is still optimistic that Qatar will outperform other countries in the region. In the short- term, the low base effects from 2009 will drive high growth in 2010, forecast at 17% year-on-year. Over the next five years, growth is expected to average 9.9% between 2010 and 2014,” said the report.

BMI said its optimism was backed by

government investment plans in which 36.9% of the 2010/2011 fiscal budget has been allocated for major capital projects, with infrastructure set to account for the majority of this, a figure of nearly QR35 billion.

“The country’s comfortable fiscal posi-tion will enable it to continue to allocate large sums to the infrastructure sector,” the report added. Government support for in-frastructure projects is probably the biggest fundamental driver of growth in the sector, BMI concluded.

QATAR LEADS REGiOn OUT OF inFRASTRUCTURE SLUMP

QATAR AiRWAyS BUyS ThREE BUSinESS jETS in $122 Mn DEAL

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nEW FACiLiTiES ATTRACT inTEREST OF GLOBAL ShiPPinG FiRMS

The growing national industrial output and the proposed new ports in Doha and Mesaieed are attracting major players in the ship-ping industry to Qatar.

Contrary to the slowdown in the global shipping industry, which has been badly hit in the wake of the eco-nomic crisis, the cargo moving busi-ness in Qatar is poised to grow further in the coming years.

Doha has received some of the leading players in the industry in the last few months and among them is CMA, one of the top three shipping companies in the world. The latest entrant into the local market is Medi-terranean Shipping Company (MSC), said to be the second largest in the business.

With Maersk already having fully-fledged operations in Doha, the three companies, which together handle more than 40% of global shipping operations form a very solid founda-tion for maritime matters in Qatar for years to come. Sources in the industry attribute the increasing interest of the global shipping companies to the en-hancements planned for the ports in Doha and Mesaieed. With the work of the New Doha port expected to be tendered shortly and the first phase of its operations scheduled to commence in the second quarter of 2015, the country's shipping activities are set to expand rapidly. The new port, spread out over an area of more than 8.75 sq km, will be one of the largest of its kind in the MENA and Mediterranean regions when fully commissioned by the end of this decade.

QATAR ChARiTy SiGnS PACT WiTh BRiTiSh AiD GROUP Qatar Charity and the London-based Muslim Aid signed a memorandum of under-standing in London last month to enhance the strategic co-operation and partnership between the two bodies in the alleviation of poverty and the support of sustainable de-velopment in the countries where they are active around the world. Besides the imple-mentation of sustainable development projects and combating poverty, the memoran-dum also aims to provide relief aid in cases of natural disasters and wars in countries targeted by the two organisations.

e ssa Ismail Samani is to become the first Qatari to study in Japan through the Supreme Education Council's scholar-ship programme, a senior official at the

council has announced. Samani was handed the student visa by Japan Ambassador HE Yukio Ki-tazume and is scheduled to travel to Japan this summer, where he aims to study at the depart-ment of mechanical and aerospace engineering in Tohoku University as an undergraduate student.

Ambassador Kitazume said that, Tohoku Uni-versity was one of the most renowned universi-ties in Japan, which has turned out a number of top researchers, including the 2002 Chemistry Nobel Prize winner Koichi Tanaka. He said that in cooperation with SEC, the embassy has been making efforts to increase the number of Qatari students studying in Japan. Up to now, just four Qatari students have been awarded scholarships from the Japanese government.

The Qatar Financial Centre Regulatory Authority will target the development of a re-insurance market, establishment of a captive insurance environment and growth of asset management as a key part of the QFC offering, its Chairman and

Chief Executive Officer Phillip Thorpe has said.

These areas for growth are being seen as important for realisation of Qatar's aspirations to become a regional hub for insurance services.

LOCAL STUDEnT FiRST TO STUDy in jAPAn On COUnCiL SChOLARShiP

QFC TO FOCUS On ThREE AREAS FOR GROWTh

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Vodafone Qatar (VQ) announced its fi-nancial results late last month for the quarter, ended June 30, 2010, where it has taken significant strides towards achieving profitability. By this same date, VQ had 534,000 customers and a 32% population share representing an estimat-ed 19% of the total market share. These customers led to the generation of QR176 million for the quarter which means an adjusted loss of QR8.8 million for the quarter, compared to QR28.7 million for the previous quarter – an improvement of 69% quarter on quarter.

Commenting on the company's mobile network infrastructure, VQ, CEO, Gra-hame Maher, said, “Our mobile network is now robust and we are concentrating on providing additional capacity where needed.” VQ now has in-building cov-erage in 67 key buildings across Qatar

providing service. Last month, Vodafone Qatar held its

Extraordinary General Assembly where shareholders unanimously approved the changes to the company’s Articles of As-sociation and Memorandum of Associa-tion to officially combine the fixed line and mobile businesses. Commenting on this, Maher said, “We are delighted that Vodafone Qatar is now a full-service telecommunications company, bringing us an important step closer to being able to compete equally with Qtel.”

“This has been a fantastic first year in Qatar. We have 100% mobile cover-age across the country with 534,000 customers and 32% of the population, all achieved in one year. We continue to build on our solid customer base that is the key driver of future performance,” added Maher.

Qatar's “full legal and political commit-ment” had placed it among the top rank of countries globally in fighting corrup-tion, according to the State’s Attorney General HE Ali bin Fetais Al-Marri.

Addressing the opening session of the second conference of the Arab An-ti-Corruption and Integrity Network (ACINET), held recently in Yemen, Al-Marri noted that Qatar had been trans-ferring its experience in the fight against corruption to international forums, in-spired by its Arab and Islamic culture.

Referring to the sixth Global Forum on Fighting Corruption and Safeguard-ing Integrity held in Doha last Novem-ber, he said the forum had asserted the necessity of a partnership to be launched among various sectors of the society to

fight corruption. The public prosecutor, who is also

the chairman of the third session of the Conference of States Parties to the UN Convention against Corruption, praised the approval of the Doha mechanism to review the implementation of the United Nations Convention Against Corruption.

He warned against the continued global financial crisis, which was the result of corruption in its various forms in the economic organisations of the developed countries and thus in the world's financial establishments.

He noted the need for a continued vol-untary support to be provided by states and civil society institutions to assist in the campaign against corruption.

The cost of living was down 2.8% in June, compared to the corresponding period last year, according to figures re-leased by the Qatar Statistics Authority (QSA) last month.

Citing details of the Consumer Price Index (CPI), the QSA said rents “the biggest contributor to the infla-tionary pressure in the recent past” fell in double digits (14.4%) in the year since June 2009. But furniture and textiles, which carry a weight of 8.2% in the CPI, became 5.8% cost-lier in June 2010 as against the cor-responding month last year.

The other commodities and ser-vices that became dearer in the year since June 2009 included medical care (3.6%) and transport and com-munications (2.9%).

While healthcare has a nominal weight (2.0%) in the CPI, transport and communications' share in the in-dex is much higher at 20.5%.

Entertainment (with a weight of 10.9% in the CPI) also became expensive by 1.8% since the middle of 2009, while the prices of miscel-laneous goods and services rose 5.5%.

The QSA said the overall fall in the rate of inflation over the past one year has been mostly due to the eas-ing of house rents. CPI, it may be noted, measures household expendi-ture in the country.

PRiCESDiP A LiTTLE

VODAFOnE QATAR OnCUSP OF PROFiTABiLiTy

COMMiTTED AGAinST GRAFT


reaLTycheck 25.ExChAnGE

TRADED FUnDS:TAkE yOUR PiCk

a study by market researcher Cen-tury 21 expects the government’s massive spending on infrastruc-ture projects to give a new boost

to construction as well as economic activi-ties in Qatar.

In May 2010, Ashghal signed five con-tracts worth QR2.13 billion and contracts included the development of Ruwais Port, the South Doha sewage treatment project and three more, according to the study.

On office market performance, the report said despite the growing demand for office space, the large volumes of sup-ply are driving leasing rates down.

Slight decline is attributed to the ease in new office supply volumes entering the market during June.

Leasing rates are expected to continue declining though large quantities of office space are expected to face absorption by end of quarter three this year. This will eventually relieve performance of office market in Doha.

Also, the retail market supply is ex-

pected to soar over the next two years with some five malls under construction, as per the report. With an increase in population, increase in purchasing power and low re-tail space per capita rates, the market is currently under-supplied and this avails opportunity for more retail space in the market.

The report also highlighted the growth of the Meetings, Incentives, Conferences and Events (MICE) tourism in Qatar. The Doha New Convention Centre will be an all-time icon in Qatar and will enhance MICE industry by offering high-end services.

The report said ‘Qatar announcing de-signs for five of the 22 football stadiums suggested for the 2022 FIFA World Cup bid was highly applauded in the Qatari business society as it will push construc-tion sector further ahead and encourage economic activity.’ According to the an-nouncement, these projects will be carried out regardless of Qatar winning the FIFA World Cup bid or not.

COnSTRUCTiOn SECTOR BUOyAnT in QATAR GOVT FUnDS

BARWA PROjECTSQatar Government stepped in to provide fresh funds for the fifth-biggest developer in the Arab region. Barwa, like other Gulf Arab developers, has been hit hard by the re-gion-wide real estate slump.

The QDF, a unit of Qatari Diar Real Estate Investment, holds a di-rect 45% stake in Barwa. It appoint-ed Barclays, HSBC, Qatar National Bank, Standard Chartered and RBS to raise $3.5 billion of funds via a dollar-denominated benchmark is-sue.

The deal will take the form of murabaha financing, said Barwa’s Chief Financial Officer Ahmed Al-Ezabi. Barwa City Real Estate Com-pany, will enter into sharia financing arrangements with two other Barwa subsidiaries once the financing from Qatari Diar is finalised.

Qatar is ensuring its key property firms face the global crisis through defensive mergers and using the real estate arm of the sovereign wealth fund to invest in them.

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d ohaland, which is building the $5.5 billion Musheireb project in the centre of the Qatari capi-tal, said that construction of the

35 hectare development is on schedule. The company said that, the raft con-

crete pouring for phase 1A of the project was currently under progress.

The first phase of Musheireb includes the construction of the Diwan Amiri

Quarter, which comprises Diwan An-nexe, Amiri Guard and the National Archive, and a Heritage Quarter that in-cludes the Eid Prayer Ground and four heritage houses. The phase is scheduled for completion in 2012. Phase 1B com-prises offices, town houses, apartments, amenities, hotels, civil buildings, schools and mosques. Schematic designs for this phase are complete and subsequent de-

sign phases are in progress, while pro-curement of main design architects and executive architects is complete. In April, the main construction contract worth QR1.56 billion ($428.51 million) on the first phase of the project was awarded to a consortium led by South Korea’s Hyundai Engineering & Construction Company. In 2009, Bauer International Qatar won the bid for enabling works.

A latest study by property consultant Asteco suggested the drop in rents were due to a strong supply and slack demand in Qatar since late 2008.

The low-end market rentals that fell 11% in the first quarter of this year, de-clined less sharply by 4% in the sec-ond quarter. The rates for four and five bedroom units declined 1% and 3%, respectively. However, the rents of the pricier three-bedroom villas remained unchanged.

The report predicts that rents could fall further due to the 5,000 housing units ex-

pected to come up in Doha. Continued oversupply in the office sec-

tor will further pressure office rents, as more space is handed over in the second half of 2010.

Overall, the downturn in the rental market has provided prospective tenants with more choice while landlords are becoming more flexible with their rents, report said.

Experts said, Qatar is taking efforts to avoid the repercussions faced by Dubai during the global financial crisis, which saw residential prices shoot up to 60%.

The solar energy project is one of the many sustainable projects, Education City is implementing as part of its expan-sion programmes. The expansion project aims to accommodate more than 100,000 students, teachers and other faculty and will be completed by 2016.Many build-ings and apartments in Education City use solar energy to heat water, resulting in big savings in electricity use. Even

the irrigation system at Education City is controlled by solar power

“Education City will be the first to use solar energy on this scale in the region. Today, at least 10 to 50% of the energy used in Education City is derived from solar energy and we aim to increase this to 70%,” said Mohammed Al-Malki, Director of Operations and Facilities, Qatar Foundation.

MUShEiREB PROjECT MOVES AhEAD

According to QNB Capital study, around 13,624 new rooms in the three to five-star categories would become available in Qatar by 2012.

A shortage in luxury rooms has arisen with Qatar taking up several mega proj-ects in infrastructure, civil aviation, sur-face transport, energy and sports which have led to an influx of personnel to Qatar. Besides, frequent visits by high-level officials and executives from vari-ous countries have added to the paucity. Even the country’s tourism industry has received a major push with the rapid net-work expansion of Qatar Airways mak-ing Doha a preferred transit point for passengers from North America, Europe, South Asia and South East Asia.

Doha is fast emerging as a major re-gional hub for meetings, incentives, con-ferences and exhibitions (MICE) which will add to the demand for more luxury rooms.

QNB Capital said several three-, four- and five-star hotels would be functional in the country by 2012.

hOTELS TO ADD 13,600 nEW ROOMS By 2012

EDUCATiOn CiTy GOES ThE SOLAR WAy

REnTS DROP FROM 11% TO 4%

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naveed Siddiqui is an expert in startup finance busi-ness. He has to his credit launches of numerous Shariah-compliant invest-

ment products. His expertise in introduc-ing the first national Shariah-compliant commercial real estate financing platform in the US endorses his position. He is the CEO of Capitas International, doing what he does best, launching multiple Islamic mortgage and specialty finance businesses.

He talks to Qatar Today on the financial climate of the country.

The crisis and its end?Siddiqui believes that the crisis is still

not over. He feels that the undercurrents are still prevailing.

“Currently, there are a number of dy-namics we need to be aware of around the world as well as here in the GCC. The sovereign debt pressures we are see-ing in the EU are signs that, aside from the private sector, governments have over-extended themselves beyond their means. The crisis in Greece is a clear ex-ample of this. In the US, while the issues close to the subprime crisis have lev-eled off the outlook for the commercial real estate sector, a major component of bank lending remains negative. The rating agency Fitch recently stated that exposure to commercial real estate will require US banks to take more losses in

2010 – which will limit the amount of credit they will extend to the market.”

The GCC countries are in no way im-mune to these global dynamics, he says.

“GCC economies have had to make tough decisions to handle the financial crisis. As a case in point, Qatar provid-ed liquidity to banks to help them with their troubled assets. In Saudi Arabia, the government had to take the surplus generated from its oil exports to increase its budget. Its large indigenous consumer base and religious tourism sector helped to sustain the Saudi economy. However the government had to step in to avoid even tougher economic times.“

He is of the opinion that the financial crisis has brought a major correction to

By Sindhu Nair

Naveed SiddiquiCEO of Capitas International

“Real estate, the diRect

contRibutoR to debt cRisis”

reaLTy check


asset values around the globe. “We won't return to the types of eco-

nomic activity – the affluence, high levels of spending, and over flow of credit – we saw some years back and we shouldn't be expected to since most of that activity lost focus on the fundamen-tals of markets and finance. We need a more measured approach to growth that is sustainable and brings risk-managed business transactions to creating equally sustainable demand.

The real scenarioWhile some markets around the globe are slowly regaining their footings, the real estate sector still seems to be waver-ing. The reason, according to Siddiqui, was because the growth was infused artificially.

“It grew beyond the limits of what was sustainable from a demand perspective. There was an oversupply of liquidity credited to undeserving obligors who never had the capacity to repay. Thus, there was no risk strategy focused on the sustainability of the sector. All the play-ers – developers, financiers and regula-tors – were unfair to markets that grew too high, too fast and may still be falling from that height.”

We have to see where the RE market was before the crisis to consider how and when it will recover, he says.

“The RE sector was a direct contribu-tor to the debt crisis. There was too much development for an end market which was over-extended through unde-served credit to drive transactions in the real estate sector. To top it off, that devel-opment was financed by debt packages

underwritten on the assumption that the property will appreciate over time. At its most fundamental level, the RE market is based on absorption – you need people and companies to occupy the space that's built. That requires a real, local market with proven demand.”

But some of the immediate effects of the RE downturn in the GCC have been addressed. And a case in point, accord-ing to Siddiqui is Qatar, whose govern-ment infused large sums of money into the banking sector to help it temporarily cover its exposure to the large real estate projects it financed.

Even with such measures someone has to absorb these assets, he says.

“It will take time to recover in markets such as Dubai and even in Qatar where there was a significant amount of over development. In Qatar, for example, re-covery will happen when local market demand absorbs the stock of available real estate. These local markets will be created through new business genera-tions which will lead to an increasing demand for commercial property and housing for larger employee bases.

“The market with the most robust local market is Saudi Arabia. They will lead the recovery, with its pent up demand for

at least 150,000 residential units per year over the next 10 years.”

Loan application versus disbursementThe loan applications far outpace the loan disbursements in GCC. Siddiqui analyses the reasons behind this.

“First, banks haven't made mortgage finance a priority, so they remain unfamil-iar with the nuances of mortgage finance. They are more accustomed to selling short-term credit products to customers for higher, short-term returns. Aside from the banks, there is also a shortage of dedi-cated mortgage providers in the market. So customers who are looking for financ-ing are not properly serviced by banks and the number of mortgage providers in the market isn't enough to service the demand.

Second, says Siddiqui, there is a lack of standardised underwriting and credit in the market.

“Existing lenders don't know how to properly measure the risk of the clients or the assets they are financing. For ex-ample, if a financier wants to assess the quality of a home for financing, they would want to collect market information such as vacancy, rental rates, construction completions, property sales in the same area, and more. These types of data aren't systematically recorded in many of the GCC markets or are just beginning.

“In addition, when a financier wants to assess the credit worthiness of a borrower it is very difficult to verify their income and balance sheet information.”

Consumer credit reporting has only re-cently started in countries such as UAE

“It will take time to recover in markets such as Dubai and even in Qatar where there was a significant amount of over development.”

reaLTy check


and Saudi Arabia. Qatar is in the process of establishing a consumer credit bureau.

“In these markets credit reporting does not provide the type of history available in more developed housing markets. This makes lenders even more cautious to pro-vide financing.”

“Third, from a legal perspective mort-gage laws in most GCC countries have only recently been drafted or are still be-ing considered. Questions remain on the enforcement of vital laws such as fore-closure rights or transfer of title. Over-all, there is a perception that in default scenarios, there is limited protection for creditors.

Finally, mortgage markets have to be sustained by an expanded base of insti-tutional investors or an active secondary market that creates liquidity for mortgage assets. More effective underwriting and greater transparency at the origination level is necessary to encourage secondary market development and growth. Gov-ernments can take a leading role in this by facilitating the creation of mortgage liquidity centers to create uniform stan-dards and boost investor confidence in the sector,” he says.

Project FinanceAccording to reports from earlier this year there is an estimated long-term project pipeline of $2.8 trillion in the GCC. This included projects in the construction, pet-

rochemicals, Oil and Gas and infrastruc-ture sectors. GCC witnessed a significant reduction in project finance of almost 50% to roughly $20 billion in 2009 from $40 billion the previous year, according to an S&P report. Securing project finance is a difficult proposition now. This has led some sponsors who have excess liquidity to finance projects themselves without trying to access global capital markets.

And the way forward, according to Sid-diqui's regulation.

“In general, the sector needs to be bet-ter regulated overall. Specifically, gov-ernments need to establish active bond and sukuk markets. These will play a vital role in long-term project financing in the region. Improved corporate gover-nance standards and the strengthening of investor protection rights should also im-prove the appetite for GCC debt whether corporate, sovereign, or project. Finally, there needs to be a joint effort between the public and private sectors. Public Private Partnerships (PPPs) will play a role in allowing all stakeholders to put forward their interests.”

Two markets, Dubai and Qatar Siddiqui compares two markets, in the real estate scenario.

“In Dubai, there is limited local demand for real estate. All of the end occupants are expatriate individuals/companies.

This makes for a very challenging market to operate in for real estate finance. At its peak, most of the financing for real estate in Dubai was being issued to expatriates or speculators. The effect of the specula-tion has been well documented – prices increased artificially in a short amount of time. To top all of this, Dubai borrowed heavily to finance these developments which never really had a proven demand. Financiers didn't assess absorption trends and kept lending against the assumption that they could expect assets to increase in value. It was banking that ignored the fundamentals of credit risk management.

“In Qatar, there are some similari-ties. For example, local demand is lim-ited. So there are oversupply risks there as well. But in contrast, because of its vast natural resources, Qatar has a base to develop local industry. Qatar can de-velop various industries related to the oil and gas sector as well as technology and education that will spur local busi-ness creation. This will be critical to cre-ate long-term employment opportunities that can be filled by locals or expats. So if the businesses are local and they are creating jobs, you have the potential to create a proper supply-demand dynamic for real estate.”

In conclusion, he says that Qatar's wealth will allow it to support its devel-opment needs internally, rather than bor-row on the scale that Dubai did n

Siddiqui talks about this lack which was identified in one of Capita’s reports.

“The point about insurance products in our reports is relevant specifically to the real estate and housing sectors. In more developed housing markets, the fi-nance industry has evolved mechanisms to manage its exposure to risk beyond the basic underwriting methods which assess the three ‘Cs’ of underwriting a loan to a borrower (collateral, capacity, and character).”

Specifically, various insurance prod-

ucts such as life insurance, property insurance, mortgage insurance, and hazard insurance are used to manage risk in home financing scenarios. For example, property insurance is gener-ally a requirement for residential mort-gages in the US to protect against pos-sible loss due to significant damages to the property. Mortgage insurance is often obtained to offer partial or full protection against loss in the event of a default. Often, mortgage insurance will only be required for financings where

the customer exceeds standard funding ratios and an extra layer of protection is needed to qualify the customer for a financing programme. Mortgage insur-ance may become especially important in the GCC until foreclosure laws are more clearly established.

“The insurance market will no doubt grow in response to the stimulus of the mortgage market. We believe that much of this development will happen in the Takaful sector which is a critical part of the growth of Islamic finance. In the meantime, an immediate solution can be affected by the public sector, by offer-ing certain key mortgage related prod-ucts such as Takaful-based property and mortgage insurance.”

inSURAnCE PRODUCTSAnd The lAck Thereof in Gcc

o&goverview


32. iTS OWn kinD OF CAPiTAL

liquefied natural gas (LNG) producer RasGas said that all its LNG trains were operational after a period of maintenance.

Qatargas also said earlier that it had re-sumed production at all five of its LNG trains after an extended maintenance period.

“I can confirm that all RasGas trains are fully operational,” according to a RasGas spokesperson.

US energy giant ExxonMobil owns 30% of the plant, while Qatar Petroleum owns the rest.

The size of the new Qatari megatrains – more than twice the capacity of some older ones – means their closure has a great impact on global gas supply

Rasgas's sixth unit, train 6, is one of the largest LNG production plants in the world, with an annual output capacity of 7.8 million metric tonnes of the gas cooled to a liquid. Its main markets are Asia and the US. RasGas had scheduled to shut train 6 for 20 days starting June 20. Qatar plans to raise its capacity to make 77 million tonnes of LNG a year by the end of this year. Qatargas too has returned its fifth production unit to opera-tion after finishing repairs on the plant. All of Qatargas's units are now operating, according to reports.

OPERATiOnS BACk On TRACk

Qatar booked a significant budget surplus in the first three months of the current fi-nancial year based on the average crude oil price during the period, according to statistics released recently.

The budget is based on a conservative estimate of $55 per barrel but the Qatari crude price averaged $77.65 a barrel in April, May and June, as shown in data compiled by QNB's Economics & Re-search Department in association with Middle East Economic Survey (MEES).

This represents an increase of 41% over the budgeted oil price in the current financial year.

Also, the Qatari crude price averaged $76.58 per barrel between January and June, the data indicates.

The current budget has estimated a surplus of QR9.7 billion in 2010-2011. It looks achievable given the ‘favourable’ crude price in the first quarter of the cur-rent financial year and the global econom-ic outlook, which points to a recovery and demand growth for oil.

Qatar's crude has been classified as Dukhan and Marine and the average of the two makes up the price.

The average oil price fetched by Qatari crude in the first three months of the cur-

rent financial year was $83.25 per barrel. The Qatari crude earned $76.57 in Janu-ary, $73.10 in February and $76.86 in March.

The prices of Dukhan and Marine crude between April and June this year were $83.90/$82.60 (April), $77.05/$75.63 (May) and $74/$72.75 (June), respectively.

The budgetary surplus will allow the country to deploy its resources prudently as has been the case in the past and in-crease its spending on infrastructure up-grade and key sectors such as education and health.

OiL PRiCES FETChES BUDGET SURPLUS


o&g overview

m aersk Oil and Qatar Pe-troleum reached the pro-duction landmark of one billion barrels from the

Al Shaheen field in Qatar. Since taking over and developing the field in 1992 to first oil in 1994, the production curve has increased steadily to the current level of 300,000 bpd whilst reducing gas flaring to a minimum.

“This is a very difficult reservoir that was thought to be impossible to produce oil from,” said Deputy Premier and Min-istry of Energy and Industry Minister, HE Abdullah bin Hamad Al-Attiyah. “Origi-nal estimates were that the field would produce no more than 50,000 barrels per day, even in the best conditions.” Yet due to Maersk Oil’s expertise in developing marginal reservoirs, today the Al Shaheen reservoirs form one third of Qatar’s total oil production, as the country’s largest oil producer.

The latest $6 billion field development

of Al Shaheen includes the installation of 15 new platforms, 163 new production and water injection wells and 140,000 tonnes of new facilities. During the comprehensive installation work, Maersk Oil managed a production uptime of over 99% without compromising safety whilst reducing gas flaring to a minimum.

“We are very proud of the fact that to-gether with Qatar Petroleum we turned this challenging field into a commercial success, within such a short time frame,” said Maersk Oil CEO Jakob Thomason.

“It is a significant achievement which has only been possible due to our strong tech-nical skills, innovative mindset and com-mitment.

As part of its sustainability drive and commitment to eco-efficiency, Maersk Oil has also succeeded in reducing gas flaring in the Al Shaheen field to a minimum. By exporting gas onshore and by using gas in-jection in the field, the company has man-aged to further boost recovery while reduc-ing flaring significantly, despite a significant increase in oil production in recent years.

REGiOnAL: DEMAnD AnD SUPPLymiddle easTern region 2001 2009 2014

oil Consumption 7.47 million b/d 10.64 million b/d 11.95 million b/d

oil production 22.83 million b/d 24.66 million b/d 27.18 million b/d

oil export 15.36 million b/d 14.02 million b/d 15.23 million b/d

Data for Middle Eastern Regional Oil (in million barrels per day)

middle easTern region 2009 2014 % growTh

gas Consumption 367.6 bcm 492.5 bcm 28.7%

gas production 429.9 bcm 657.8 bcm 39.8%

Data for Middle Eastern Regional Natural Gas (in billion cubic metres)

QaTar 2009 2014

gas Consumption 5.82% 7.12%

gas production 24.89% 23.81%

Data for Qatar Natural Gas (in percent)

OnE BiLLiOn BARRELS MiLESTOnE

Al Shaheen oil-field


banknoTes 35.TURkEy:

ThE PATh OF RETURn

allianz Takaful and Standard Chartered Bank (SCB) have announced a sales agreement to promote insurance products

from Allianz Takaful in Qatar. According to the five-year exclusive

signed agreement, SCB will promote and sell Allianz Takaful's life insurance portfolio comprising plans for protection, savings, investment and child education. The products will be available to the Bank's customers under an array of Bank assurance investment-cum-insurance products.

Commenting on the partnership, Al-lianz Takaful, Chairman, Dr Abdulrah-man Khalil Tolefat said, “We are proud to be associated with one of the oldest and leading multinational banks in Qatar to sell our Insurance products. We are look-ing forward to another mutually benefi-cial relationship with Standard Chartered

Bank in the region after having success-fully launched in Bahrain last year.”

“The products are now available at the Bank branches across Qatar. Custom-ers can avail the services at Standard Chartered Bank's Relationship Man-agers to tailor-make Allianz Takaful products to suit their specific insurance requirements.”

Allianz Takaful Chairman, Dr Abdulrahman Khalil Tolefat with Standard Chartered Bank officials

announcing the agreement.

QFMA hOSTS MOnEy LAUnDERinG WORkShOPThe Qatar Financial Mar-kets Authority (QFMA) recently hosted a workshop on the authority's guidelines on money laundering and terrorist financing.

The event, according to authori-ties, is the latest in a series of training programmes and workshops adopted by the Authority to increase aware-ness among capital markets partici-pants, particularly on matters related to money laundering and terrorist financing.

The workshop was attended by officials from the QFMA, Qatar Ex-change (QE), as well as representa-tives from the brokerage firms operat-ing in QE and the Qatar Information Unit.

The training included a presenta-tion to clarify Law No. (4) of 2010 and the related rulebook, which was issued in accordance with directives aimed at unifying the efforts of all regulatory authorities for a safe and stable market.

The QFMA's rulebook is focused on combating money laundering and terrorist financing, and stresses the importance of paying attention to the internal entity of the licensed parties by conducting tests, inspections and controls, as well as setting the neces-sary training programmes, in order to achieve the desired results when ap-pointing the employees or officials in charge of applying this rulebook.

Qatar National Bank (QNB) has plans to open over 20 new offices in the region by the end of this year. Apart from the new branch in Geneva (Switzerland), QNB will have 15 branches in Syria, four in Oman and five in Sudan.

Disclosing the expansion plan, QNB Group, Chief Executive Officer Ali Sharif Al Emadi said “The decision is driven by strong net profit and customer deposit. To meet the substantial increase in activities, we have planned more expansion, both in conventional and Islamic banking.”

Al Emadi said the Bank's focus was on the MENA region and it was targeting

full coverage in the region. QNB is 50% owned by the Qatar Investment Authority. Stating that the Bank's international op-erations had seen strong growth, the QNB Group CEO said it contributed 31.5% of the Bank's total assets and 17.4% of net profit. He attributed the rise in contribu-tion from international activities to the significant increase in overseas presence.

As part of its expansion strategy, the Bank has opened a number of new branches since the beginning of 2005, in-cluding those in Kuwait, Oman, Yemen, Sudan and Singapore as well as represen-tative offices in Libya and Iran.

QnB ExPAnDS OVERSEAS

nEW inSURAnCEPRODUCTS FROM SCB


bank noTes

Middle East Investment Banking Industry continues to grow with second quarter ac-tivity contributing to an impressive overall first half of 2010. The analysis, compiled by Thomson Reuters, shows that although the second quarter activity was at a lower level than the first quarter, there is still a strong foundation to build on, for the remainder of 2010. Thomson Reuters Middle East & Af-rica, Managing Director, Basil Moftah said, “Although the second quarter was modest in comparison to a highly impressive first quarter, the two have combined to build a solid start to 2010. The levels of fees, M&A,

capital market and loan activity are fuelling a growing confidence among the Middle East investment banking community.”

“Geographically, Qatar is the most ac-quired and acquisitive country in the Mid-dle East, representing 29% and 30.8% of the activity respectively. HSBC topped the M&A Ranking with $12.129 billion as Standard Chartered climbed 21 places into fourth position with $11 billion. The top deal with any Middle East involvement for the second quarter was the Qatar Holding acquisition of Harrods, with Credit Suisse advising the acquirers.”

Analysis of the Thomson Reuters Middle East Investment Banking data for the first half of 2010 showed that the volume of Middle East targeted M&A in Q2 dropped 70% in Q1 2010, but contributed to a first half that reached $11.7 billion – the busi-est start to a year since 2008. It also showed that investment banking and advisor fees reached $247 million during Q2 contrib-uting to $429 million for first half of 2010 – up 19%. Middle Eastern debt issuance reached US $5.6 billion during Q2, driven by the Financials, Governments/Agencies, and Telecommunications sectors.

BAnk SARASin PREDiCTS ECOnOMiC SLOWDOWnThe fiscal and monetary stimuli, which triggered a spectacular economic upswing in recent quarters, will dwindle in second half of 2010 causing an economic slow-down, according to Bank Sarasin's latest edition of the ‘Global View’ Research Outlook for Q3 2010. Also, since the cred-it bubble excesses have been unabsorbed yet, another acceleration is likely to take place but during the course of first half of 2011. According to the report, Central Banks will continue their zero interest rate policy due to the nascent economic slow-down and the euro debt crisis suggesting low interest rates in the long-term. Gov-ernment bond valuations are high due to the debt crisis and a setback cannot be ruled out in the short-term, says the Bank.

Bank Sarasin believes the potential for corporate bonds is still intact, however. Emerging market equities are inexpensive and Bank Sarasin has upgraded them to neutral in its current asset allocation. In Eu-rope, Bank Sarasin focuses on core coun-tries, including Switzerland and the UK, while avoiding equities from the Euroland periphery. The expected decline in risk aver-sion among investors in Q3 suggests the increased weighting of cyclical sectors at the expense of defensive sectors.

Qatar Islamic Bank (QIB) has recorded a net profit of QR601 million and an oper-ating income of QR1.143 million in the first half of 2010. Total Equity reached QR8.4 billion by end of the first half of 2010, an increase of 12% compared to 2009, whereas return on average eq-uity (ROAE) was 16.1% (EPS: QR2.82 share). In the first half of 2010, net financ-ing income was QR906 million compared to QR845 million in the same period of 2009. Net fee income was QR175.8 mil-lion, a growth of 75%, compared to last year. Unrestricted investment account holders' share of profit was QR236.4 mil-lion, an increase of 19%.

Total Assets reached QR45.2 billion,

a growth of 27% from first half of 2009. Return on average asset (ROAA) was 3%. The first half of 2010 Financing Portfolio results recorded QR28.6 billion compared to QR19.7 billion for the corresponding period of 2009 (growth 45%), with Do-mestic Financing representing 95% of the Portfolio. Similarly, Investment Portfolio amounted to QR5.9 billion against QR4.3 billion in 2009.

Customers‘ Current & Unrestricted In-vestment Accounts grew by 26% QOQ from QR25.4 billion in first half of 2009 to reach QR20.2 billion in the same pe-riod in 2010, which reflects customers’ increasing confidence in the QIB performance.

inTERnATiOnAL iSLAMiC BAnk (QiiB) RESULTS With net profit of QR272.3 million in the first half of 2010 ending on June 30, compared to QR255.2 million in the cor-responding period last year, showing a 6.7% growth, the bank earned a total in-come of QR528.1 million showing 19% growth compared to the corresponding period last year.

The Bank's total assets stood at QR18.4 billion at the end of June 2010 compared with QR16.6 billion in the corresponding period in 2009, showing an increase of 11%. The Bank's financing portfolio rose to QR11.8 billion in June, 2010 compared to QR10.1 billion in the corresponding period last year. This represents an in-crease of 16%.

The bank's long-term deposits rose to QR10.8 billion in June 2010 compared to QR9.1 billion in June last year, an increase of 18%. International Islamic's Capital Adequacy Ratio was 23.23% which was well above the Basel II requirements.

QiB POSTS hALF-yEARLy RESULTS

inVESTMEnT BAnkinG COnTinUES TO GROW


bank noTes

r obert Broadwell, Vice Presi-dent at asset management firm BlackRock, is meet-ing institutional investors in Doha about the firm's

‘iShares’ product, for which he is Head of Sales for the GCC.

Qatar Today meets Broadwell to learn about iShares. What is it, and how is it relevant to Qatari investors? iShares is a brand of Exchange Traded Fund (ETF) which is gaining popularity among investors.

The concept of the ETF is a pooled in-vestment fund, similar to a unit trust or mutual fund, which can be bought and sold on a stock exchange, like a share in a company. The difference between iShares and ‘regular’ shares is that you can buy into an entire particular market or markets. For example, if you think Lon-don's FTSE 100 index is going to begin

to perform well again, then you can in-vest in the market as a whole, rather than an individual company or bond. Should the FTSE 100 pick up, say, 10% in value over the course of a year, then the value of your investment in the market will exactly mirror that rise, minus fees.

Seeking new investorsBroadwell has been working around the region ‘for the past couple of years’ seek-ing new investors for his product in the shape of banks, pension funds and pri-vate client advisors to HNWIs (high net-worth individuals). That ETFs have mushroomed in popularity over the last decade – $100 billion (QR365 billion) in assets under management in 2001, over $1 trillion (QR3.65 trillion) now – indicates an appetite for the product but, he says, that appetite is keener now than before.

By John Hunt

YouRtaKe

PicK


bank noTes

“The economic crash of the last couple of years has had a positive impact on the levels of new business we are doing,” Broadwell explains. “Prior to the crash, people were more inclined to take risks with their investments, but now they are more cautious, and this is why ETFs are taking off – one of their selling points is the level of security they offer an inves-tor,” he says.

Historically, many investment decisions have focused on return in isolation. But there is growing recognition that return must be considered in the context of risk and cost. The ‘broad base’ composition of the ETF model means that, while the very nature of investments means they are not guaranteed to increase in value, the inves-tor is protected against the catastrophic failure of a single entity. Broadwell cites the case of the US bank Lehmann Broth-ers, whose collapse in 2008 left thousands of investors with worthless derivatives. “What am I left holding if the single com-pany which holds my investments fails? Nothing,” he says. The object lesson here is an old one – don't put all your eggs in one basket.

“With iShares there are over 400 indi-ces available covering the various global markets,” says Broadwell. “From the available options you can pick single or multiple stocks, single or multiple mar-kets, single or multiple funds. The anal-ogy I like to think of is of an enormous box of crayons. You can choose as many or as few colours as you like with which to ‘illustrate’ your investment.”

The haven of goldOf the trillion dollars plus that iShares is managing in ETFs, over $60 billion (QR219 billion) worth is in gold, and this amount grows daily. Economic upheaval makes some people nervous and the ‘fall back’ position of investing in something solid and historically appreciable waxes in popularity. It's ironic that one of these positions should be in the company of the physically inert gold. It's also ironic that the more people come looking for the rel-atively risk-free shelter that the element represents, the more bullish – and there-

fore slightly more volatile – the market becomes. Broadwell explains the popu-larity of gold as a proportion of funds managed by iShares by pointing out that, “ETFs with a gold ingredient are backed up by a security note drawn up against the actual, physical bullion in a vault some-where. The cost of investing in gold is actually cheaper for our customers than other types of stock and certainly com-pares favourably with the cost of buying the gold yourself and the cost of storage. Furthermore, you negate the risk of get-ting robbed on the way to the bank!”

While security is one of the ETF selling points, Broadwell also cites the flexibility of the model that allows the mildly con-troversial practice of short-selling should you wish to bet against a particular mar-ket. Short selling is becoming increas-ingly frowned upon by the big markets due to its potentially damaging effects and Broadwell does not disagree with me when it is described as having slightly ‘sleazy’ connotations, “...but it's still legal,” he says with a smile.

The likelihood of the dreaded ‘double dip’ in global markets is one that splits

“Prior to the crash, people were more

inclined to take risks with their

investments, but now they are more

cautious, and this is why ETFs are

taking off”

Robert Broadwell, Vice President at asset

management firm BlackRock


bank noTes

economists down the middle and while Broadwell's thoughts on the matter are discussed between us, he's keen to point out that while BlackRock does not offer investment advice – it enables the means of investment – should you wish to back falling markets, this option is available to you.

Transparency of investment is another feature of the EFT. With some types of investment, there is a lack of clarity as to exactly where your money is actually invested. There may also be little trans-parency to see how the investment is per-forming on a daily basis. iShares ETFs, claims BlackRock, ‘consistently achieve their objective of closely tracking the per-formance of the market’ and the details of where your money is invested – and its current worth – are available online to customers. Getting in and out of an investment position is quick and testa-ment to the flexibility and liquidity that Broadwell claims for his product.

The fact that Qatar is a booming and cash-rich economy would doubtless have had an impact on Broadwell's presence here but on being asked if there is any-thing particular to the Qatari market that demands he be here, a couple of interest-ing points were raised. Firstly, he says, “iShares offers a number of Shariah-compliant funds which are relevant to local investors”, but he also insinuates that these same investors are somewhat ahead of the curve in their appetite for the product, which has done most of its business in Europe and the US thus far. It seems Broadwell's services are in de-mand both actively and proactively when he says, “People are looking for invest-ment variety, and iShares provides that. Institutional investors in Qatar have been using ETFs for years and on top of that I am seeing an increasing understanding and awareness of the product.

“Demand for diversified products is becoming a commonplace and people are more curious about ‘other’ types of investment,“ he says, acknowledging the active nature of the demand for iShares but also giving us a glimpse of the sales-

man psyche when he says, “I'm also here because I believe in the product.”

A ‘democratic’ investmentThe underlying concept of the ETF – multiple choice – is one that Broadwell champions. “Choice,” he says, “is good. Choice means competition and this is beneficial to the investor in terms of keeping costs down. There is also a de-mocracy about the product that appeals to me. You don't need to be rich to get in-volved in ETF investment – you can buy a single share in a particular market from $20-$30 or so. Anyone can get involved and I think that's pretty cool.”

Secure, transparent, flexible, acces-sible to all? Sounds good, but what's it going to cost me? To say that Broadwell wouldn't be drawn on the specifics would be to do him a disservice as, in concert with the myriad ETF investment choices available, costs vary according to a vari-ety of factors – the size and make up of your portfolio and number of changes to your portfolio are two that can influence the bottom line. However, iShares' pro-motional literature claims that ETFs are significantly cheaper than index-tracking mutual funds and managed mutual funds (with the caveat that the extra cost of the latter stems from the fact that it is an in-vestment type which aims for higher re-turns than a market or index). “Don't al-ways go with the cheapest sticker,”says Broadwell. “Look at the total cost of the package and you will find we are com-petitively priced.”

So, why use iShares and not a com-petitor? “We're proficient. We know what we're doing simply by dint of the amount of experience we have. It's a ‘legacy’ product and we've been doing it the longest. It's always good to go with a provider that's big in scale and with iShares you'd be managed by a fund with a trillion dollars' worth of product. You'll be supported by our research around the product and since we were there first, our funds are largest,” he says. And with that, Broadwell hurries off to his next appointment n

“The analogy I like to think of is of an enormous box of crayons. You can choose as many or as few colours as you like with which to ‘illustrate’ your investment”


arabsnippeTs 46. MAnAGinG EMPLOyEES

OF DiFFEREnT GEnERATiOnS

VALUE OF GCC PROjECTS PUT AT $1.3 TRiLLiOn The combined value of the 100 largest projects in the GCC during the last two years totals more than $1.3 trillion, ac-cording to a study by MEED, a business intelligence provider, in alliance with its Quality Awards for Projects 2010. The real estate sector continued to dominate the region despite the impact of global financial crisis.

While the approximate value of transport projects across the GCC was put at $164 billion, oil and gas projects stood nearly at $131 billion, the study revealed.

“From the world's tallest building to the first zero-carbon city, the GCC region has over the past decade pushed the lim-its of what can be achieved in the built environment,”said Edmund O'Sullivan, Chairman of the MEED Quality Awards for Projects.

nOn-OiL ExPORTS On ThE RiSEA report issued by Saudi Arabia's Central Department of Statistics and Information (CDSI) showed that the Kingdom's non-oil exports rose to $3.17 billion for the month of May, up 40% from a year ear-lier, SPA reported.

The main non-oil exports were plastics and petrochemicals, which reached a to-tal of $1.95 billion, representing 61% of non-oil exports, the data showed.

Asian countries were the main import-ers, receiving 30% of the non-oil exports in May, followed by fellow Gulf Arab states with 23%.

The United Arab Emirates led the im-porters with around $347 million, fol-lowed by China which imported products worth around $267 million.

gcc

saudi arabia

The six-nation Gulf Cooperation Coun-cil (GCC) has finalised a plan to set up a human rights panel in the region, which will have independent and impartial ex-perts as its members and office bearers, to deal with human rights issues and ensure more accurate auditing of the hu-man rights records in the region.

“The move to set up the first regional panel of its kind comes following a rec-ommendation made by the GCC foreign ministers in a meeting last month,” ac-cording to a statement released by the GCC General Secretariat.

“The endorsement to create this re-gional body is an important step forward in the establishment of the new mecha-nism to protect rights of the Gulf citizens and ensure more protection to the grow-ing number of migrant workers,” said an

anonymous GCC human rights official. He pointed out that similar human rights bodies ‘both private and government-controlled’ are already in existence and are functioning well in other regions, including Africa, the Americas and Europe.

The panel will also be entrusted with the task to highlight the steps taken by the GCC states to improve the human rights situation of the Gulf citizens in line with Arab and Islamic values. The move is significant keeping in view the fact that all Gulf States – Saudi Arabia, Bahrain, Kuwait, Oman, Qatar and the UAE – have often found and complained that the reports issued by some interna-tional organisations tend to undervalue or ignore the GCC's achievements in the field of human rights.

GCC TO SET UP hUMAn RiGhTS PAnEL

BAn On BUSES in CEnTRAL MADinAh With increasing numbers of visitors to Madinah expected in the run-up to Ramadan, the Ministry of Haj has prevented buses from entering the central area around the Prophet's Mosque to avoid congestion.

The ministry has issued a circular directing all Haj and Um-rah companies not to allow their buses from entering the central area. The ministry said all buses will be allowed to park in the car park for land pilgrims on the outskirts of Madinah.

The Shoura Council recently made a proposal to ban all ve-hicles carrying less than 25 people from entering the holy city of Makkah during the Haj season. Muhammad Al Ghamdi, Sec-retary-General of the council, said the arrangements should be made in the interest of both pilgrims and residents. A reduction in the number of vehicles entering the holy city will help facili-tate the smooth operations of ongoing expansion programmes, he said. Currently vehicles carrying less than nine people are banned from entering Makkah and the holy sites during the peak pilgrimage season.


fideL fiTnessCUBA, Havana : Picture taken from www.cubadebate.cu of former Cuban President Fidel Castro (top) as he gestures during a meeting with members of the Cuban Study Center for Economy, in Havana on July 13, 2010. Castro made his third appearance in less than a week. AFP PHOTO / www.cubadebate.cu –ALEX CASTRO

worLd view

rock boTTomSOUTH AFRICA, Johannesburg : Netherlands' midfielder Wesley Sneijder lies on the pitch at the end of the 2010 World Cup football final between the Nether-lands and Spain on July 11, 2010 at Soccer City Stadium in Soweto, suburban

Johannesburg. Spain won 1-0. AFP PHOTO / THOMAS COEX

noT inTo nuke

IRAN, Tehran : Iranian nuclear scientist Shahram Amiri holds his son upon arrival at Imam Khomeini Airport in Tehran on July 15,

2010. Amiri had gone missing from Saudi Arabia in June 2009 while on a pilgrimage and surfaced in Iran's Interests Section in Washing-ton on July 13, 2010. Iranian officials claim he was kidnapped by the

Central Intelligence Agency of the United States. US officials have denied these accusations. AFP PHOTO / ATTA KENARE


worLd view

a spanish affairSPAIN, Madrid : Spanish players parade on a open bus in Madrid on July 12, 2010, a day after winning the World Cup for the first time 1-0 against Netherlands. Over one million fans were expected to line the streets of Madrid to watch the Spanish squad parade through main streets on a open bus. TOPSHOTS / AFP PHOTO / DOMIN-IQUE FAGET

GREECE, Athens : Police officer dem-onstrate outside the Greek parliament against the government's austerity mea-sures in Athens on July 14, 2010. Strug-gling Greece raised more money than expected on July 13 after sweetening the terms of its first sale of government debt since a last-minute EU-IMF bailout saved it from default just two months ago. AFP PHOTO / ARIS MESSINIS

copped ouT


view poinT

By Oliver Cornock

The author is the Regional Editorof Oxford Business Group

its own Kind of caPital

q atar is many things to many people. To culture vultures, it is a place of cutting-edge design and innovation in the field of Islamic art and

the base of one of the Middle East's most distinguished orchestras. To expatriate workers, it can be a breath of fresh air after growing up in London, New York, or Mumbai. And to those in the financial world, Doha shows promising signs of becoming a global capital of banking.

Those who champion Qatar as a bank-ing power – even, some say, the next fi-nancial centre of the Middle East – point to two things to explain why Doha de-serves capital status. First, they see Islam-ic banking as a rising force in the global financial industry, an area where Qatar has taken a lead, and see an Arab country as the obvious centre of that kind of busi-ness. Secondly, they point to Doha, with its blend of traditional and modern lux-ury, as the type of place an international professional would choose to live.

Each of these reasons is at least partly flawed. Qatar is, undeniably, on the rise, and Doha is well on its way to becom-ing a cultural and economic centre for the Middle East region. But if it wishes to reach the top – to become the centre – it will have to beat quite a string of contend-ers for the crown.

First, consider Islamic banking. Doha is home to Qatar Islamic Bank (QIB), which was established in 1982 and as of end-2009 could lay stake to the title of the fourth-largest Islamic bank in the world. In addition, there are three other Islamic banks in Qatar and nearly every domestic bank offers Islamic products. But despite this activity, Qatari banks are not yet able to compete with more established Islamic

banking hubs in terms of sophistication or market share.

Islamic banking is offered worldwide, with the major markets based, naturally, in the prime Muslim population centres of the Middle East and Southeast Asia. There is, as of yet, no definitive global governing body for Islamic financial products, and differences in legal con-cepts mean that Islamic finance is prac-ticed in a slightly different way in the Middle Eastern and Southeast Asian mar-kets. In addition, transactions tend to be large-scale and, correspondingly, infre-quent. This means that sophistication of the kind seen in conventional banking – futures trading, hedging, derivatives, etc – is very hard to coordinate, as most of these instruments rely on frequent public transactions. At present, Kuala Lumpur is the only place in Southeast Asia – and, for that matter, in the world – where sukuks are traded at a volume sufficient to allow swaps. The Bahrain Financial Exchange (BFX), scheduled to open later this year, aims to bring that kind of activity to the Middle East, but it remains to be seen if it will be able to attract enough business from other regional exchanges to be able to achieve the levels of action it aspires to. In addition, there are a number of de-velopments outside these geographical regions – from the US's General Electric offering a sukuk in 2009 to rumours of Paris setting up its own Islamic banking apparatus, similar to the one established in London.

Then there is the question of Doha as a cultural centre. Until recently, for better or worse, it was a stretch to give this title to any city other than Dubai. Dubai In-ternational Airport was the port of entry for the region, and its extravagant proj-

ects and events dominated the headlines. Yet over the last few years, a number of other cities have gained market share, so to speak, in the cultural sphere, with Doha being one of the top contenders. To do this, each city has had to pursue niche markets where Dubai wasn't as strong. For example, Muscat championed it-self as a peaceful, laid-back destination, Bahrain drew Formula 1 fans with its In-ternational Circuit, Abu Dhabi followed suit with its own F1 circuit and is setting up branches of the Louvre and Guggen-heim museums. For its part, Doha has sought to court the cultural elite too, with its own museums and architectural monuments, plus intellectuals with ex-cellent higher education opportunities, sports enthusiasts with world-class sta-dia and events, and, not least, investors with the country's solid balance sheets.

In effect, these niche developments have all but ensured that no city is likely to end up being the capital of the GCC, just as there is no true capital of Europe. But this is not a negative: no country can be all things to all people (and bankers). Each has its strengths and attracts a cer-tain type of investor, resident, and tour-ist. Until a set of international standards for Islamic banking is decided upon, the prospect of being ‘capital’ in that respect will be difficult as well.

Qatar's strengths are many and all signs indicate there is plenty of business to go around in this region. Trying to please too many people at once can lead to con-flicts of interest and a lack of identity. Doha has already distinguished itself as a cultured, dynamic, forward-thinking city. It may well do best if it maintains its already high standards rather than try-ing to become everyone's standard n


view poinT

I f you mix assets with different characteristics, says modern portfolio theory, then, for any given level of risk, an investor can achieve a higher average re-

turn. This still holds true. A famous study by Brinson, Singer and Beenbower found that 92% of investment returns came from asset allocation. Indeed, nearly all studies show it to be the single largest contributor to returns.

Yet, in the ‘new normal’ which applies to investing today, the mix includes not just equity, bonds and cash but alterna-tive types of assets too. The latter covers everything from commodities to hedge funds, private equity and real estate. As alternatives become more liquid and ac-cessible to investors, bonds as a propor-tion of the total are likely to fall. Stocks tend to climb in value as recessions near their end; rising inflation usually signals the peak in a cycle of economic expan-sion. So investors use what is known as dynamic allocation to ‘lock in’ profits if the return is ahead of its target.

Two further forces have combined to undermine accepted practise as the world economy struggles to regain momentum. The first is the rise of emerging markets and the fact that their economies are likely to keep growing faster than those of devel-oped ones. This implies that the proportion of assets allocated to emerging markets must climb from its current level of 5-10% of equity and bond portfolios.

Some pension funds and endowments already devote as much as 30-40 % of their assets to alternatives, particularly over longer periods. But which bench-mark should they use? Those introduced by Morgan Stanley Capital International (MSCI) are the de facto standards of eq-uity investment the world over. But there is a problem. While such benchmarks are a measure of capitalisation, they encourage investors who track them to buy more of the shares of companies whose capitalisa-tions are rising, and to sell those which are not. The result is that investors tend to buy when the shares are high and to sell when they are low.

One way to avoid this trap is to allocate investments on the basis of GDP instead of market capitalisation. Evidence shows that investors suffer less from volatility and can outperform the MSCI global equity index by as much as 5% a year.

Sustainable InvestmentA second unknown is the effect on invest-ment of sustainability. Resources will be-come constrained as the world's population grows and people become wealthier. This, in turn, will require more investment in en-ergy, food and water. Take the worldwide consumption of meat. Since 1985, demand has more than doubled as emerging econo-mies became wealthier and people aspired to richer diets. Since agriculture uses 75% of the world's water, the effect on natural resources is also marked. Simply getting

water to where it is needed will become a problem requiring huge amounts of in-vestment even in the developed world. By 2020, half of US distribution networks will need to be upgraded.

So far, the institutions that have put most weight behind emerging markets have been those prepared to escape the constraints of benchmarks based around market capitalisation. Many have begun to look at natural resources and sustainability and how such themes can be incorporated into asset allocation.

We believe that a thematic approach to investment which concentrates on the mega trends affecting economies today – such as population growth, urbaniza-tion and the demand for infrastructure of all sorts – could benefit investors. Not only is such an approach by definition longer term; it also helps asset managers and so investors to capitalise on the op-portunities which are spurring developing economies.

Since the beginning of 2006, when the UN Principles for Responsible Invest-ment were launched, more than 600 asset managers have signed up to them. More important, the amount of money in their charge has also climbed, to more than $10 trillion at the last count. It is no surprise then that more and more asset managers promote sustainability as a way to prove their credentials. So much so that sus-tainable investing could soon become an asset class of its own n

By Douglas Hansen-Luke

The Middle East CEO for Dutch investment manager Robeco. The views expressed below are personal and do not necessarily reflect the views of

Robeco, its parent Rabobank or any affiliated company.

how investoRs should allocate theiR assets in the ‘new noRmal’


TaLking TacT

o nce again, Turkey is the cy-nosure in the Arab world following the aggression on its Gaza-bound flotilla by impenitent Israel – reviving

Arab hopes that a ‘hero maybe restored’.In four years, an eager Arab street has

curiously observed Turkey's Prime Min-ister Recep Tayyip Erdogan, a hero in the eyes of many Palestinians and Arabs, draw the line against Israel.

Openly censuring the war on Lebanon in 2006 and on Gaza in 2008, Turkey has taken a serious stand against the siege on 1.5 million Gazans since its inception.

This is how dreams would look, but what about the reality? Harsh as usual.

Turkey has long been Israel's clos-est friend in the Muslim world. In 2009, they had roughly $2.5 billion in trade and $1.07 billion in military cooperation in 2008.

But the relations between these two allies have come under an increasing strain over the years, dipping to a nadir in the flotilla aggression. But how far can Turkey strain ties with Israel and conse-quently the US?

And when we know that a damaged relationship means less business, is the Arab-Turkish rapprochement enough as an offset?

Qatar Today raised these questions to His Excellency Emre Yuntthe, the Turkish Ambassador to Qatar.

tuRKeY: the Path of RetuRn

By Ahmed Lotfy

His Excellency Emre Yuntthe, the Turkish Ambassador to Qatar


TaLking TacT

Turkey's increasing interest in the Arab region – some define it as a shift of attention from the West who laid hurdles in your way to the EU membership; to an increasingly important region once annexed to the Ot-toman ancestors. How do you define that shift?Recently, it has been widely argued that Turkey had a shift of attention from the West to the East. This is not true. Let me put it this way. Our foreign policy has been more active, more developed in the range of international relations. This doesn't mean we're no longer interested in our relations with the West.

We are changing in terms of enlarging the focus of attention, and not shifting the focus somewhere else.

We're opening new embassies in Africa and Latin America, launching more Con-sulates in China, India and the US. This activity overlies a government policy that regards international relations as one of the economy's mainstays.

Is the EU membership dream dead, or are you still behind it?The first time we applied for the EU membership was in 1959. Negotiations have been based on a document called the ‘Negotiation Framework Document’ that contains 25 chapters that have to be nego-tiated separately. So far, we've been doing our homework. We haven't completed the entire thing due to political impediments placed in our way by the Europeans. Al-most half of the chapters are frozen be-cause of issues like Cyprus, unilateral de-

cisions of some countries such as France, and relations with some neighbouring countries that have nothing to do with the EU system.

Turkey is still making a huge effort. We're developing our internal system that will be adapted in the EU.

We have an ad-hoc organisation called the ‘European Union Secretariat General.’ They are enhancing the administrative ca-pacity in the country. So we are optimistic about the future.

Even if we become an EU member, we cannot turn our back to our Arab broth-ers. Our accession will be to the benefit of the EU itself. In part, Turkey can serve as a bridge between the EU and the Arab world.

Of course, we have to accept that enthu-siasm and public support have dropped, because of the hurdles thrown our way.But when such hurdles go away, things will be back to normal.

Do you think the recent finan-cial crisis and the ensuing debt woes dimmed the brilliance of any association with Europe or the US?Not at all. These things happen. These are mere fluctuations as in any cycle. They don't diminish the importance of the EU, nor do they shake the long-term confi-dence in the global economy. We're opti-mistic about the future

On the Palestinian front, Tur-key seems to have reinvented it-self, but the question is how far can you go?

We feel responsible for helping our broth-ers in Palestine. Our active foreign policy takes interest in lending support to Palestinians.

How do you perceive your rela-tions with the GCC?The current volume of trade exchange be-tween Turkey and the GCC is not enough. We are still concluding the free trade agreement with the GCC countries. It is taking time because we have a customs union with the EU, so negotiations with the GCC must be compatible with that.

Also, some Gulf countries want to include the service sector in our trade agreements – which is new to us. In Tur-key, some of the service sectors are not open to foreign investments, like bank-ing, insurance, and telecoms. So the gov-ernment is studying such requests and we expect action soon.

Any timeframe?One or two years, maybe.

What about your trade rela-tions with Qatar?In total, the trade volume has been hov-ering within the territory of $100 million and a billion. Last year, it dropped to $400 million, but improved a little this year.

The key sector of Turkish involvement in Qatar is construction and construction-material exports. Over 25 construction companies currently undertake projects here.

We are negotiating with Qatar to import LNG (liquefied natural gas). Currently private sectors are already buying Qatari

“The Palestinian problem is not solely a Turkish problem – it is a humanitarian issue. We are going together with the world and the UN in solving it, not on our own.”


TaLking TacT

gas, but the government is interested as well.

We are open to building a pipeline go-ing through Saudi Arabia, Jordan, Syria and Turkey, which can be connected to the ones transiting through Turkey, like Nabucco. If implemented, this pipeline will boost the transition of Qatari gas to Europe.

With Turkey's rejuvenated di-plomacy is looking into areas that have so far been handled by other regional heavy weights like Egypt, Saudi and Iran. How do you avoid any negative senti-ment or feeling of competition?There is no reason for looking at things from that point of view. We are all trying to make a contribution in the resolution of the region's problems.

Erdogan promised action on Gaza after the flotilla. In your view, how far can you go?Well, we are making decisions along with the UN and other global powers. We are not doing it on our own. This is not solely a Turkish problem. It is a humanitarian issue. In the flotilla aggression, we have a special problem with Israel because of the loss of lives. There must be some con-sequences for Israel's reaction. But this

is a separate track. In terms of lifting the embargo on Gaza, we are going to con-tinue to try to lift the embargo. This does not necessarily mean that the others can do nothing. We have to do it as a world community.

Now pro-Turkey emotions on the Arab street are strong, and so are the expectations from your country. Your comment?As our Prime Minister said, we are not do-ing this to assume the role of a hero. We feel these people (in Palestine) are suffer-ing. We will do our best – diplomacy of course – to solve this issue.

We know we are not alone in this. Qa-tar, for example, is working on that as well.

An Algerian newspaper had ‘quoted’ Prime Minister Erdu-gan saying ‘I will bomb Israel,

shall any harm happen to the Gaza-bound flotilla.’ How do you comment on that?This is a mere speculation with no basis.

You are investing heavily in edu-cation, academic research and innovations. What's your vision and what's the progress to date?The current government attaches great im-portance to education. In many villages, you will find computers in elementary classrooms. Schools are having internet fa-cilities. We have established techno-parks in many universities too.

Education is the way of superiority, so we are investing a lot in it.

We are taking part in the EU programmes and initiatives to develop academic research, such as the Seventh Framework Programme. Countries contributing to these programmes submit projects that, if accepted, would be funded and implemented.

Turkey's success to date shows how fast the country is going. Now, we are investing 2% of GDP on education and research, but aiming at 3%.

In a decade from now, where do you anticipate Turkey to be?We are aiming at becoming the world's tenth economy. This is possible in less than ten years n

“In the flotilla aggres-sion, we have a special problem with Israel because of the loss of lives, and there must be some consequences.”

b y J o h n H u n t

“A note of cAution underpins mAny

finAnciAl trAnsActions now, in A wAy

tHAt wAs not necessArily tHe cAse

before tHe crAsH. tHis is evident not

only in retAil, but in investment too.”


l e a p o f l u x u r y

uxury goods, as a symbol of success (or, indeed, aspiration to the same), have often been the torch bearer for conspicuous consumption. You

have it, and you want people to know that you have it. By their very nature, high-end goods can eat up just about any percentage of your disposable income you can afford to spend, but you have to have the money. There are, however, other factors to consider in how sales of luxury goods are defined.

How are retailers of luxury goods performing in the Qatari market? What challenges are retailers facing, and how are they facing them? What, also, of the aforementioned ‘other factors’? Qatar Today spoke to a number of distributors of luxury brands to find some answers.

The global economic woes of the past couple of years have been well-documented, but Qatar’s economy is currently in rude health, with Dun & Bradstreet, in conjunction with the Qatar Financial Centre Authority, reporting that Qatari GDP is expected to grow by a hefty 18.5% this year – over five times the projected increase of Kuwait, for example.

Although Qatar has not suffered economically in the past few years in the way many western economies have, it’s a fallacy to suggest the economy has been unscathed. In 2009, according to Business Monitor International figures, nominal GDP fell very slightly (due almost entirely to the fall in price of hydrocarbons on the world’s markets) from $110.7 billion (QR403 billion) to $109 billion (QR397 billion). However, the rise in the population of the country

in that same period – from 1.4 million to 1.6 million – made a significant correction to the GDP per capita figure from $76,459 (QR278,000) to $67,715 (QR246,460) per annum, which represents a fall of over 11%.

feeling tHe effectsIn retail terms, this per capita GDP drop is huge, and the effects have been felt in Qatari luxury retail. Luxury, once thought recession-proof, seemed in danger this time around because of the broadening appeal of discount brands.

The Rivoli Group is a significant player in Qatari luxury retail (QLR), with eight outlets in the country including multiple representation at Doha’s main malls where its extensive roster of luxury brands include names like Omega, Christian Dior, TAG Heuer and Vertu. We spoke to the Group General Manager, Abraham Koshy, and asked “How do current revenue levels in QLR compare with the ‘boom time’ of a couple of years ago?” “So far, so good,” said Koshy.

“We’re not back to the extremely strong sales of 2007-2008 but the trend is upward this year and we hope to maintain the positive momentum. Maintaining our standards, keeping operational costs under control and delivering a decent return will be the challenges for the next few years. There are still areas to maximise and we still remain optimistic about growth.”

What was behind the dip in sales? Was it purely down to the global recession or were there other factors at play? “One can say that the recent global economic crisis has been the precursor to the various anomalies in business,” said Koshy.

“A dip in sales is one repercussion

of the economic downturn, which in turn, is one factor related to complex business mechanisms that have caused low sales figures. Inflation, credit crunch, change in consumer behaviour, alternate HR policies, delayed purchases are all factors that have in various ways affected sales in the industry.”

From Rivoli, we can see that sales were ‘extremely strong’ a couple of years ago but have rebounded to levels near, but not completely equal to, those enjoyed in 2007-2008. We can also see that the blame is being laid squarely at the feet of the global recession – this is not a surprise – but Koshy goes on to list ways in which the recession and the fall in GDP per capita demonstrated above has impacted retail spend, along with a mysterious mention of ‘consumer behaviour’, and to this we will return.

bouncing backThe dip in sales is not a shock, but what is intriguing is, as the Americans would say, the ‘bouncebackability’ of luxury brands that within a year to 18 months of the worst global financial weather since 1930, sales are edging close to their pre-crash peaks. Granted, the overall strength of the Qatari economy plays its part in this but this resilience of luxury brands shows how important brand equity is in high-end retail. This nurturing of a brand and its products – sometimes over a period of more than a 100 years – in terms of research and development, marketing and advertising (often at significant expense) give luxury brands, like well-planned and lean economies, the foundations on which to regroup in the event of a setback.

For many, the name that pops up when luxury is mentioned is that of Rolls Royce. In March, the bespoke carmaker


reported a dip in sales of 10% for 2009, almost identical to the contraction in the Qatari GDP per capita figure. Six months later and the ‘Spirit of Ecstasy’ has somewhat different news to report: sales in the Middle East a whopping 98% higher in the first half of 2010 than in the respective period of 2009. “This is a clear sign of the unparalleled appeal of Rolls-Royce, in particular following the challenging economic environment in 2009,” said James Crichton, Regional Director for the Middle East.

With all due respect to Crichton, one could substitute the name of his product with any number of high-end brands. After all, if you need a decent car, you buy a Nissan or a Volkswagen, but as a memorable advertising campaign from years past opined about another legacy car manufacturer: ‘It’s not a car. It’s a Mercedes-Benz’.

A note of cautionHas any lasting damage been done by the recession-led falls in revenue? “Overall, businesses have felt the impact in varying degrees,” said Koshy. “The general vibe across retail sectors has been of caution. Many customers have postponed their luxury buys.

“Like-for-like retail sales in 2009 witnessed double digit drops for certain locations within our group and the bottom-line figures reflected similar declines. However, we need to bear two things in mind. Firstly, 2008 was a record-breaking year for most retailers in the region in terms of sales. Secondly, ‘same store’ sales figures are supposed to be an indicator of a retail chain’s stability, strength, and growth, but since everyone knows that in 2009 the overall economic climate was all about global uncertainty, weakness and

downsizing, the numbers realised within that economic environment have to be viewed in that perspective.

“First quarter 2010 sales figures have been positive and in several locations are even better than 2008 numbers. So there are still areas to maximise but we remain optimistic about growth,” Koshy added.

Well, that’s a ‘definite maybe’ from the retailer but it hardly sounds catastrophic. What of the brands themselves? Have they felt the strain at all? Qatar Today spoke to Damien Vernet, General Manager Middle East and India for French luxury fashion house Louis Vuitton (LV). According to global branding giant Interbrand, LV was the world’s 16th most valuable brand last year – worth more than the likes of Samsung, Honda and even Apple.

crisis equAls opportunityLV has had a presence in Qatar since May 2008 with the opening of its store in Villagio and if Koshy sounds cautiously optimistic in the face of the recession, Vernet sounds both bullish and like a man who enjoys stormy weather when he says, “2009 was another strong year for Louis Vuitton. Generally speaking, times of crisis are a time of opportunity and when the strongest brands become stronger.

“This happens for a number of reasons, the no-compromise approach of Louis Vuitton when it comes to quality and distribution and when consumers become even more discerning and watch their spending, they tend to stay or go back to very strong brands that have stood the test of time.

“The very clear strategy of not discounting or going promotional, particularly at a time of global panic,

“We’re not back to the extremely strong sales of 2007-2008 but the trend is upWard this year and We hope to maintain the positive momentum”

– abraham KosHyo f r i v o l i g r o u p

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expAt bArgAins go from oasis to desert

back in 2007, the relative weakness of the dollar meant that for non-US visitors to countries whose currencies are pegged to the ‘greenback’, some exceptional savings could be

made. The more valuable the purchase, the greater the saving, and for the traditional intransigence of high-end retailers to offer discounts, a way to engineer your own discount courtesy of the money markets.

British Project Manager Eleanor Graff visited Dubai in 2007. Business was primarily on the agenda but the stereotypically female trait of window shopping was to present an opportunity. “I’d been looking for a luxury watch for a little while, but had yet to make a final choice,” she said. “At that time, one pound sterling would buy you over two dollars and knowing that the dirham was pegged to the dollar, I was curious to see if the bargains that the UK press were reporting as available in the US itself extended to the Gulf. It made sense that there would be some saving.

“I had a look at a Rolex that I had seen in the UK and the salesman, ever ready with his calculator on the counter, did the maths. It was a good deal less than what I would have paid in London, where asking for a discount on most Rolex models will only get you a funny look – you either pay the price on the tag or you go without,” Graff added.

The salesman probably wouldn’t have made an easier sale that week, but fast forward to 2010, and at current exchange rates, one pound will buy you only $1.50 – 25% less than just a couple of years ago and this devaluation is replicated with most other currencies. For the time being at least, your best chance of a discount is going to have to be dependent on a keen eye for the sales, a benevolent retailer – and a willingness to haggle…

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l e a p o f l u x u r y

“there is no doubt that Qatar has got

all the ingredients to continue to groW

very fast, probably faster than most of

its neighbours for the foreseeable future”

– damien verneto f l o u i s v u i t t o n

where retailers are being increasingly desperate and aggressive with sales, clients appreciate the fact that a Louis Vuitton product continues to provide very high value and that the product does not get discredited from one period to the next,” he added.

It’s unsurprising to hear Vernet espouse the necessity of maintaining brand integrity by not employing discounting strategies or similar – as we have discussed, brand integrity is not lightly, or cheaply, won – but it is unusual to see a global recession cited as a time of opportunity. Vernet’s confidence in this respect might come from strength in numbers – LV’s holding company (LVMH) also owns brands such as Givenchy, Krug Champagne and TAG Heuer, is present on Paris’s CAC40 stock exchange and employs an overall workforce of 77,000.

A good deal of homogenisation through partnerships and takeovers has occurred in the luxury retail sector in the last 20 years. So much so that very few of the biggest and most prestigious names have to face inclement economic weather alone. Ferrari has Fiat, Omega has Swatch.

brAnd loyAlty remainsWhen observing a household budget, sometimes economies might involve swapping the Ariel washing powder in your trolley for Carrefour own brand, or that new washing machine you need to replace your ageing twin-tub might have to be an Indesit rather than a Miele. Does the same thing apply in terms of luxury purchases? Samsonite makes superb luggage but have they picked up any sales because customers have not been able to quite stretch to a luxury brand? According to our respondents, the answer is a resounding ‘no’.

“Louis Vuitton has not lost any customers to less prestigious brands,” said Vernet. “On the contrary, Louis Vuitton becomes even more of a point of reference when clients are paying more attention to what they buy.” Koshy concurred when he said, “Loyalists of a brand don’t change easily. This would mean that in the face of the current economic circumstances, a brand-conscious customer might delay their purchase of a quality luxury product but rarely would they turn their loyalties elsewhere.” The customer still covets the luxury item over its ‘deluxe’ counterpart – it might simply be a question of exercising some patience to be able to afford the brand you really want.

What, then of the aforementioned ‘other factors’ that influence luxury retail? There are two obvious candidates: confidence and perception. These factors are of course influenced by the economic outlook but they are not directly connected, they are ancillary.

Consumer confidence plays a big part in the decision to buy any non-essential good, and the amount of ‘confidence’ required to buy a luxury good is emphasised the higher the price of the item. According to the MasterCard Worldwide Index of Consumer Confidence, Qatari consumers are suffering something of a crisis of this commodity.

Released twice a year, the Index is based on a survey which measures consumer confidence on prevailing expectations in the market for the next six months based on five economic indicators: Economy, Employment, Stock Market, Regular Income and Quality of Life. The Index score is calculated with zero as the most pessimistic, 100 as most optimistic and 50 as neutral. A


h h h c o v e r s t o r y

year ago, Qatari consumers scored 74. Six months ago, they scored 89.2 and just last month, the figure dropped to 66.

Qatari consumers, we see, are wavering. This is almost certainly due to underlying concerns – shared worldwide – at the prospect of a ‘double dip’ recession and the hydrocarbon markets, so vital to the Qatari economy, taking another hit. You may well have the money right now to buy the luxury item you want, but are you sure you’re not going to need that money for something less extravagant in the near future? A note of caution underpins many financial transactions now in a way that was not necessarily the case before the crash. This is evident not only in retail, but in investment too (see p.25).

A psycHologicAl conceptThe other factor to consider is perception – how is it going to ‘look’ if I make that luxury purchase? Is there a circumstance where the purchase of a big-tag item could have a negative effect, diametrically opposed to the intended impact? There is. Qatar Today spoke to the Vice President of a Qatari company who did not wish to be named. He told us, “If you’re the big boss of a company and your order book or sales have been a bit lean in the last couple of years then perhaps staff bonuses or salary increases might have to go on hold. How is it going to look if you then turn up at work in a brand new Bentley? It’s not going to look good, is it?”

The strand that unites ‘confidence’ and ‘perception’ is the simple psychological concept of peer pressure. Some don’t feel it at all, but for most of us, it is a factor whose influence is hard to resist.

The cyclical nature of the world’s

markets suggests that another crash is inevitable at some point in the future. Have our respondents learned any lessons from the past to equip them for the future? “We have factored in the current situation in our plans and are realistic about the path ahead,” said Koshy. “We have not ignored worst-case scenarios as part of our strategy that would determine our ability to adapt. The downturn seems to be a temporary, albeit protracted phase. We are fortunate that the governments in the region have accorded priority and are allocating significant resources for this to tide over,” he added.

Vernet, however, seemed to find the idea of global economic collapse almost tiresome when he said, “The lesson of the economic crisis that started almost two years ago, and of most of the previous dips is that some elements provide a fantastic resistance to downturn: quality, authenticity and full control of the distribution. Louis Vuitton, which has been in existence for 156 years, is lucky to have those assets, so we will be facing the future with serenity.” One can almost sense this statement appended with a little Gallic shrug.

dynAmic And optimisticVernet and Koshy are clearly reading off the same page, though, when it comes to their views on what the future holds for luxury retail in Qatar. “2009 was a challenging year for retailers across the globe and this region was not exempted during the downturn,” said Koshy. “However, when we look at 2010, our first quarter numbers are very encouraging and we have experienced double-digit growth. The future for luxury retail looks very

promising for Qatar and we are looking at areas of growth in the Qatari market place,” he added. Koshy’s position of ‘dip and recovery’ can be illustrated by official figures from the Federation of the Swiss Watch Industry which shows exports of Swiss timepieces to Qatar falling off by 2.9% from 2008 to 2009, and picking up 3.3% from 2009 to 2010. When one considers distributor mark-up for this type of product, these percentages will increase significantly in retail terms.

“Since we opened here in 2008, this has been a very dynamic market,” said Vernet. “There is no doubt that Qatar has got all the ingredients to continue to grow very fast, probably faster than most of its neighbours for the foreseeable future. Our relationship with Qatari customers existed before we opened our first store in the city, but the proximity has helped us serve them better and understand the market better.

“We are very bullish about this relatively new market for luxury, and the number of retail projects that are being announced is a testimony to its dynamism. We are therefore constantly on the lookout for future opportunities or expansion projects,” said Vernet.

We can conclude that while confidence among Qatari consumers is somewhat erratic, it is positive overall. The economic outlook is predominantly good – albeit with a note of caution – and luxury retail in Qatar has a bright future. High-end goods appear to have gained resilience through homogenisation and solid marketing but while luxury retail seems able to suffer the slings and arrows of outrageous fortune, it is not bulletproof. Not quite n


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S hould companies take dif-ferent approaches to man-age employees of different generations?

This question has been at the top of the mind for managers in re-cent years. For example, younger work-ers were a key focus in the 1990s, when a youth culture characterised many of the

IT companies that were driving unparal-leled economic growth. Recently, with the greying of the baby boom generation, managing older workers has become a common topic. However, a Gallup study suggests that when it comes to employ-ees' level of engagement with their jobs, it may not be the oldest workers who are most at risk – nor the youngest for that

matter.Gallup's measure of employee engage-

ment consists of 12 items that consistently predict positive workplace outcomes, in-cluding increased retention, productivity, profitability, and customer engagement and improvements in safety and absen-teeism. A random sample of about 7,700 American workers (excluding manag-

muddled in middle agemanaging emPloYees of diffeRent geneRations


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ers) were asked to respond to these items between January 6, 2009, and April 5, 2009. This large sample allowed for close analysis of how engagement levels vary by demographic and job categories across the US workforce.

The results indicated that the ratio of

engaged to actively disengaged work-ers – a metric that serves as a summary indicator of workplace conditions – was lowest among employees aged 30-59. Employees in this age range are more likely to be actively disengaged, meaning they exhibit a negativity that can spread to co-workers and erode an organisation's bottom line. The percentage of actively disengaged workers was highest among those aged 40-49 (22%). Workers in this age group were almost 1.5 times as likely as those aged 18-29 or those aged 60 and older to be actively disengaged (15% for both the youngest and oldest age groups).(See graphic “The Frustrating Forties.”)

Losing the focus on developmentExamining the responses to specific items provided clues to the factors that drive greater discontent among workers in the middle age groups. Ratings for items that relate to employees' personal develop-ment tended to sag most in the middle groups – and particularly among employ-ees aged 40 to 59.

As these age differences indicate, once employees pass early adulthood – the years when many are learning the ropes in their chosen profession – they become significantly less likely to strongly agree that their workplace is a source of per-sonal development. This perception drops

even further among workers in their 40s and 50s, who are significantly less likely to strongly agree that someone at work encourages their development and that they have opportunities at work to learn and grow. These percentages rise sharp-ly again among those in the oldest age group, which could include employees who have deferred retirement and who have stayed in the workforce by choice rather than necessity. (See graphic ”Ar-rested Development?”)

Do these trends really matter? Af-ter all, shouldn't employers naturally be less focused on developing workers as they grow older and more experienced? Perhaps, but ignoring employees' devel-opment needs – regardless of their age – won't keep those workers productive and engaged. Workers aged 40-59 who strongly agree with both the ‘develop-ment’ and ‘learn and grow’ engagement items were significantly more likely than other employees to say they experienced happiness and enjoyment the previous day and significantly less likely to say they experienced worry or stress.

Does job type matter?In reviewing theories about how age-related changes affect work motivation,

psychologists Ruth Kanfer, PhD, and Phillip L Ackerman, PhD, noted that some job types are more likely, than others, to have a clear development track that may help keep people engaged in their careers over the long-term. “Among professional workers, for example, opportunities for work role change may sustain high lev-els of work motivation throughout the life course,” they write. “In contrast, for service workers performing routine tasks, dearth of opportunities for work role changes may increase the likelihood of work role deficits in midlife and late adulthood.”

Gallup's 2009 employee engagement research reveals that age trends do differ by job type for some items. For example, the proportion of professional workers who strongly agree that ‘there is someone at work who encourages my develop-ment’ is well above average among those aged 18 to 29, then drops to slightly be-low average for all age groups between 30 and 59. For workers with jobs in the service, manufacturing, transportation, and installation/repair categories, the pro-portion who strongly agree with the same item drops further below average among those 40 to 59 before recovering among those 60 and older.


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ConclusionGallup research has consistently demon-strated that local workgroup conditions have a significant impact on employees' productivity and emotional investment

in their jobs. But the ageing process also influences how employees view their work, as demonstrated by psychologists' findings that life goals and motivational factors tend to shift as people grow older. And as a multitude of career switchers

can attest, midlife is a time when many people re-evaluate their goals and make changes accordingly.

Great managers understand these needs and continually communicate with em-ployees about their aspirations and work with them on developmental paths that help them avoid career ‘ruts’. And those who manage workers in highly struc-tured roles – jobs that wouldn't seem to require individual expertise – must be particularly attuned to their employees' need to have a plan for their professional progress. Managers who show creativity and commitment in helping employees carry out such plans may well keep their employees engaged – and this will help them reap the benefits of those employ-ees' experience and judgment as they pass through middle age and beyond n

Survey MethodsResults are based on telephone interviews conducted as part of Gallup Daily track-ing the Gallup-Healthways Well-Being Index survey January 6 - April 5, 2009, with a random sample of 7,740 employed adults, aged 18 and older, living in all 50 US states and the District of Colum-bia, selected using random-digit-dial sampling. For the purposes of this study, employees in management and executive positions were excluded from the analy-sis. For results based on the total sample of national adults, one can say with 95 percent confidence that the maximum margin of sampling error is ±1.1 percent-age points. In addition to sampling error, question wording and practical difficul-ties in conducting surveys can introduce error or bias into the findings of public opinion polls).

Steve Crabtree is a writer for Gallup. He contributed to writing Building En-gaged Schools, Gallup's book on educa-tion reform

Copyright The GallupOrganisation, Princeton,

NJ. All rights reserved.Reprinted with permission.

Visit the Gallup Management Journal at gmj.gallup.com


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aRe You an a-PlaYeR? taRget an a-emPloYeR

t he number of employers look-ing for A-Players is once again on the rise after a worldwide fi-nancial crisis which forced many top employers to lay off key staff.

Employers today are demanding top cre-dentials and are well positioned to source top candidates given the number of un-employed and under-employed A-Players in the marketplace today.

In demand are candidates with out-standing technical skills, excellent educa-tion backgrounds, unblemished profes-sional experience histories and admirable personality traits.

You are all of that... and more. Will you

simply go with the flow and jump at the first job opportunity that comes your way? Don't you classify yourself as an A-Player who is entitled to work for an A-Employ-er? Shouldn't you look for a company that has what it takes for an A-Player such as yourself to want to join its ranks?

Our recommendation is simple: Ask yourself what are you really looking for. What are you worth? What com-pany would satisfy your professional ambitions?

The career experts at Bayt.com share some insights below regarding what to look for in a potential employer company regardless of its size or capital!

A company with a vision: Gone are the days of corporate visions revolving around lofty unachievable dreams; it's all about visions with an attainable focus today, inspiring but realistic visions that give corporate direction to a company's founders, executive team, staff and pro-spective A-players. Target a company which involves its community and staff in its plans, a company you can relate to and where your individual objectives can correlate with the corporate strategic objectives. A company with a healthy & positive

corporate culture: Employees spend most of their time in the office. Would


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Bayt.com is the #1 job site in the Middle East with more than 30,000 employers and over 4 million registered job seekers from across the Middle East, North Africa and the globe, repre-senting all industries, nationalities and career levels. Post a job or find jobs on www.bayt.com

today and access the leading resource for job seekers and employers in the region.

you want to spend your day suffering from the repercussions of negative of-fice politics, an unreasonable hierarchy scheme or colleagues you do not relate to in any possible manner? A sense of be-longing to the corporate culture is a key motivation and driver for employees to commit to one specific job or company, according to 31% of Middle Eastern pro-fessionals who have taken part in a Bayt.com survey. Target those organisations that have a set of lucid corporate norms and sound values that you can personally respect and relate to. (Not easy to figure this out before joining? It's always wise to interact with current employees while you are going through the interview pro-cess on the company's premises. Insider information is priceless!) A company that provides Job and

Financial Security: While it is not only about the money, the remuneration pack-age will play a fundamental role when your are comparing offers from poten-tial employers and as an A-player you are inevitably seeking some degree of medium to long-term job security, a vi-tal commodity that has escaped many professionals during the recent economic turbulence. Look for fair and compelling total compensation packages comprised of a competitive salary as well as benefits that could include performance-based bonuses, personal (and family) health in-surance, retirement schemes, education allowances and perhaps even children's education support. Think twice about companies that demonstrate a high degree of volatility in staff turnover and look in-stead for those that provide a healthy de-gree of career longevity and sustainability for their staff (again, insider information works wonders here). A company that conducts regular

performance reviews: Should you be interested in a company that does not value regular employee job performance

appraisals? Probably not as these apprais-als will often be your principal means to gauge how well you are faring vis-a-vis your daily responsibilities and to discuss and set bigger and better job objectives as well as receive assistance with directions to help achieve them. Regular employee job performance appraisals also offer the opportunity to voice any issues or con-cerns you are faced with and suggest any additional job tasks you would like to un-dertake. This being said, make it a point to look for an employer who listens and does not shy away from providing regular constructive feedback, then beefing it up with necessary support! A company that offers opportuni-

ties for career development: Does the company you are considering foster regular in-house trainings? Fund exter-nal training programmes for current em-ployees? Organise internal job rotation programmes? It is vital for you to have an answer to these questions as some companies have halted official employee career development programmes as part of their post-crisis restructuring strate-gies. Do you really want to be part of their team? You should be looking for an employer who is willing to invest in you and support you to advance both person-ally and professionally: 32% of profes-sionals surveyed in a recent Bayt.com employee motivation survey have agreed that professional growth opportunities are a prime motivator when it comes to committing to a certain job or company. An employer willing to invest meaning-fully in their employees is definitely an employer you would want to target. A company that does not shun

employee recognition: Are you an overachiever? An innovator? Do you constantly succeed and exceed your company's expectations and maximise its ROI? “Over-worked, under-valued” is then not a valid or sustainable long-

term proposition for you. Look instead for a company with a meritocratic cul-ture and clear reward and recognition schemes where you will receive a strong public and private boost for your ef-forts. A company that recognises and ac-knowledges a job well done is definitely a keeper. A company that can show flexibil-

ity where needed: Employee work/life balance strategies, now more than ever, are hungered for by employees world-wide. A recent Bayt.com survey shows that 91% of working professionals in the Middle East consider work/life bal-ance very important to their personal and professional well-being. “Over-worked, overstressed” is probably also not an equation you favour. Aim for a company that demonstrates a genuine concern for the well-being of its staff and an inten-tion to show flexibility where and when needed, a company that is aware of the importance of work/life balance and its effects on the morale and productivity of employees. Work-/life balance strategies can be illustrated in various ways includ-ing flexible timings, occasional telecom-muting allowances, strictly limited eight -hour office workdays, daycare facilities for working mothers, a company cafete-ria and perhaps even a company gym or discount rates at a local gym or spa. A company that provides/believes in

mentor/apprentice relationships: Look for a company that invests the extra ef-fort in turning its managers into mentors. A healthy, positive and mutually benefi-cial relationship between an employee and his line manager was deemed a key motivational factor by 32% of Middle Eastern professionals surveyed in Bayt.com's recent motivation survey. You are a knowledge seeker, a career enthusiast and a mentorship aficionado and should aim to work for a company that fosters these practices n


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after 15 years as a leadership consultant and executive coach, I am seeing a trend and a pressure, in the Middle East, which I have not seen

at any time in the past or anywhere else. The economy and the thrust for nation-

alisation are only part of the equation, but we are seeing young Nationals – Emiratis, Saudis, Qataris – assume CEO positions in their late 30s in family businesses. The trend is increasingly being mirrored in the major international and domestic compa-nies where it is not uncommon to find a Director or VP role occupied by a late 20 or 30-something national. In any culture, especially one where ‘grey hairs’ are re-vered, this is no small challenge.

Ralph Waldo Emerson, philosophised “The years teach what the days can never know.” There is no substitute for the wisdom that comes from experience – in good and bad times. It is estimated that more than 85% of an executive's career

learning will come from on-the-job learn-ing and real life experience.

But as we watch young nationals as-sume senior positions, we have an ethical and commercial obligation to help them understand the nature and challenges of their role and provide them with the ‘oxy-gen’ they need to flourish and grow. So too, with the education, engagement and encouragement we provide to the next generation of leaders emerging out of the schools and universities at home and abroad.

Still today, our Executive MBA pro-grammes and the in-classroom education programmes that we offer executives in the Middle East, continue to major on the technical skill sets required by generalist business practitioners. Finance, Strategic Planning, Supply Chain Management and Accounting form the core of most management education programmes. But surely, these are hygiene factors for all senior managers and are not the core skill

set that will differentiate an average Ex-ecutive from a great executive.

When asked what he wanted to get from the programme, a senior leader commented, ”I want to take back some control, I want to be able to influence my organisation, my boss, my career, my work and life balance; in short to make the complex more simple.”

The leaders of today and tomorrow are telling us that what they need now, more than ever, are leadership skills. The lead-ership skills – the ‘soft skills’ – required to navigate complex, diverse and bound-ary-less organisations, to articulate pow-erful visions and communicate, influence, motivate and mobilise themselves and others in pursuit of exceptional perfor-mance and results.

As an Egyptian executive in a pan-GCC Bank told me recently, “I can finance the heck out of complex problems and get vital products into sub-Saharan Africa but I still freeze when I need to have a difficult conversation with an under-per-former.” Today, most executives have an extremely underdeveloped capacity for recognising, understanding and dealing with emotions – both their own and those of others.

Assuming a power or leadership posi-tion is a daunting and intoxicating chal-lenge. Dictators and despots, corporate leaders at the likes of Enron, Tyco World-Com and Lehman Brothers have to vary-ing degrees all shown what happens when a ‘person with power’ moves away from being the master of his or her personality and moves towards being the servant of his or her personality.

Good leadership is a result of person-ality and just as bad leadership is also a result of personality. Strong character comes from playing to the ‘bright side’

exec tRainingthe maKing of a leadeRnEARLy ALL MEn CAn STAnD ADVERSiTy, BUT iF yOU WAnT TO TEST A MAn'S ChARACTER, GiVE hiM POWER: abraham LincoLn


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strengths and mitigating the risks of the ‘shadow side’ weaknesses. Keeping the EGO in check and ensuring the personal-ity is an asset, not a liability, is essential if one is not to be forgotten, or in the afore-mentioned cases, remembered for all of the wrong reasons.

Psychologists have long pointed to the fact that human beings have three natu-ral psychological responses to assuming the position of power in an organisation: loneliness, insecurity and guilt.

Leadership is a team game but quite often without peers, isolated and moving at lightning speed. Executives are denied the fellowship, empathy, reassurance and candid feedback they need at the time they need it most. Yet the truth is, in the pres-ence of executives most people say more but speak less. Of ‘performing seals’ and ‘statues’, executives often magnetise the self promoters and lose out on the wis-dom of others.

Typically, academic high achievers who rode the fast-track in their companies, young executives are often wrought with deep insecurities and a fear of failure – the fear that at some point ‘the wheels will come off’ or that the career trajectory will slow or stagnate. A young Saudi CEO of a large family business recently told me: “Each night I go to bed and reflect why do they think I have all the answers? Each morning I wake up I ask myself, is today the day they find out that I don't?”

Sigmund Freud went as far as to com-pare the peculiar psychological relation-ship between the leader and follower with that of a hypnotist and his subject. He even went as far as to suggest, via his theory of ‘transference,’ that the follower often thinks of the leader as a ‘father fig-ure’ and will assume the emotional state of the leader at any given time. The pres-sure of this situation combined with the ‘Why me? Do I deserve this?’ response

can catalyse guilt in the leader.A young Emirati CEO recently con-

fessed to me, “I often do wonder if I am in this position because of who I am and because of my last name – my results are there for all to see but I just can't shake the notion.”

Middle East executives need coaches, colleagues, peers and counsellors, now more than ever. What business schools, management education providers, coaches and indeed, colleagues of executives need to do now is hold up a mirror and ask, “Are we really supporting our executives and equipping them with the self aware-

ness, emotional intelligence and skills they need to effectively do their jobs, lead their companies and create wealth for the Region?”

A young, Turkish, CFO, working in the GCC shared an old Turkish phrase with me recently: “You can't have a baby in one month by having nine mothers.” While there is no substitute for the wisdom of experience, certain leadership skills can be taught and executive learning journeys can be fast-tracked.

We must do more to prepare our ex-ecutives for the ethical, commercial, and people conundrums that will assail them each day of their lives. The ‘save face’ culture that pervades Arab cultures, where difficult and corrective conversations are avoided can be a barrier to providing con-structive feedback – particularly upwards feedback to those more senior in years or

rank.Since October 2009, we have all had a

first glimpse, or a reminder, of what the ‘bad times’ can look like in what was an unprecedented global economic crisis where a ‘double-dip’ could have been catastrophic. We are all part of the solu-tion.

Business schools must stand-up, espe-cially in light of the learnings gained from the economic crisis, and provide the Ex-ecutive Education programmes that deal with the leadership skills that will drive the post-Lehman executive towards com-mercial and ethical success.

Those of us, who have formal or infor-mal access to executives, must have the courage to provide objective feedback to senior leaders on business, operational and leadership performance. We must allow our executives the time, space, feedback and support required for them to effect personal change. The opportunity to ex-periment, to succeed and fail, and to be the best that they can be.

The leaders of today and tomorrow must put their own house in order. Accurate self-assessment and a genuine openness to feedback from others can set the base-line from where the learning journey (re)starts. Setting a strong personal vision and action plan and embarking on a learning journey that recognises the ‘whole self’ – professionally and personally – can see the executive chart a course that will benefit not just themselves but their families, their companies and our region n

“Most executives have an extremely underdeveloped capacity for recognising, understanding and dealing with emotions – both their own and those of others.”

By Dr Brendan McCann

Dr Brendan McCann is a business psychologist and executive coach. He is head of leadership development for Mercer in the Middle East. Brendan has led programmes for over 3,000 practic-

ing leaders in the GCC and North Africa. He has worked in the Region for 10 years.


Tag This

in RECEnT yEARS GCC GOVERnMEnTS hAVE MOVED inTO ThE DiGiTAL WORLD WiTh A nUMBER OF POSiTiVE iniTiATiVES DESiGnED TO hELP CiTizEnS ACCESS GOVERnMEnT SERViCES.

By Jamie Morse

The author is an Account Director at Hill & Knowlton Qatar. He has an MA in Professional Communications and is a member of the International Public Relations Association.

PoweR to the PeoPle!

s ocial media began simply as a means of connecting people online. But following the as-tonishing growth of social media platforms like MySpace

and Facebook, social media was very quick to attract the attention of advertis-ers. Direct communications from corpo-rate entities followed soon after.

But relative to marketers and the corpo-rate sector, government entities have been slow in adopting social media tools and platforms. Remember how the Obama Presidential campaign of 2008 was seen as the first US Presidential election to broadly utilise social media?

That’s only two years ago. If you con-sider that social media really took off in 2003 with the launch of MySpace which by 2006 had 100 million international subscribers, it is strange that governments around the world took so long to see the potential benefits of social media. Face-book, launched one year after MySpace, also had over 100 million users by the time the Obama campaign got started.

Indeed the Obama campaign will go down as the litmus test for social media usage in the public sector as, following Obama’s success, governments around the world began to look very seriously at what opportunities social media platforms might offer them. Discussions around these opportunities are very interesting for communications professionals, public sector workers and the general citizenry.

Perhaps understandably the first meth-od of operation for government social

media usage has been in electioneering, copying Obama’s lead. But not all po-litical leaders, nor political parties, have been successful with the social media tac-tics they’ve engaged. Broadly speaking, those which have chosen to try and attract voters to purpose-built social media plat-forms have been far less successful than those who have engaged with the citizenry on their preferred platforms – Facebook, LinkedIn, etc. As governments decided they would try to take advantage of the two-way communications which digital media offers, many initiatives failed to grasp this central tenet of social media.

I recall one platform created by the pro-vincial government in my home state back in Australia. Designed to allow voters to directly comment on and affect govern-ment policy, it was lauded as one of the most innovative and open two-way dia-logue models of government-to-citizenry digital media spaces ever created. But, as it was housed on a government website, it failed to attract the level of engagement it was hoped it would. Only a small minori-ty of people are so civically engaged as to choose to communicate with government on its terms. But if you go to Facebook and type in any local political issue you will find the kind of broad-based civic en-gagement that governments which have embraced social media crave. This is backed by a 2009 Pew report in the Unit-ed States which found that civic engage-ment is still linked to income levels, but with more and more people linked to the Internet, more and more voices are being

heard commenting on local issues. But, most importantly, these voices are being heard on their terms and in their spaces, not on the pages/platforms of their local senator or house representative.

GCC nations, despite having started their push towards fully-integrated digi-tal connectivity relatively late, are ben-efitting from the advantage of being able to install the best available infrastruc-ture to service the online needs of local populations.

In recent years GCC governments, inspired by broad-based e-government services available in countries like Singapore and Korea, have moved into the digital world with a number of posi-tive initiatives designed to help citizens access government services. Hookumi is one excellent local example. With obvious differences in political systems between GCC nations and those of the countries mentioned above, it remains to be seen if Qatar, UAE, et al, will seek to engage directly with local populations in the same way other nations have. Never-theless, if two-way communications with local populations are to move from the Majlis to the PC, local leaders will again benefit from the trial and error of other nations in this regard.

For governments everywhere com-municating with their citizens remains a challenge requiring careful consideration of message creation, delivery and distri-bution. However, in the digital age, find-ing the citizenry, at least online, has never been so easy n


green scene

t he second seminar conducted by Qatar Green Building Council (QGBC) was a widely attended event with more than 120 mem-bers spanning the construction

and property industry, representatives from government agencies, NGOs, aca-demic institutions and students. Problems with recycling, sun-shading on modern buildings, water scarcity, and lighting and energy usage in Green Buildings, were all discussed and several pertinent issues raised.

Welcoming the members Abdullah Al-Misnad, Co-Chair of QGBC's Research and Innovation Committee called on the audience to support the promotion of Green Buildings by attending and partici-pating in QGBC's awareness seminars. QGBC will continue to hold such net-working events to provide a platform for the members of the industry, educators and students to exchange information and help raise awareness on sustainability, he said.

In the opening sessions Eng Moham-med Jaber, Chair of QGBC's Education Committee spoke on the need to reduce lighting levels and energy usage in build-ing design. He pointed out that, it not only reduces costs but also helps in improving overall quality of the building and helps in preserving the health of the residents and the environment.

Building on these concepts, Dr Alex Amato, Co-Chair of QGBC's Research

and Innovation Committee talked about problems with recycling, when it made sense and when it didn't. In his brief in-troduction to recycling in the construc-tion industry, he looked at methods of assessment that are different from those currently practised in many building sus-tainability assessment systems. He also examined the relationship between recy-cling and reuse, and then discussed the implications that this would have upon the construction sector.

In his lecture, Martin Hay, Vice Chair of QGBC's Technical Committee, ad-dressed the subject of sun-shading on modern buildings. He examined the dif-ferent means of providing sun-shading while still achieving good daylight pen-etration, looking at the growing sophis-tication of controls and how architecture can respond to changing conditions. He also examined how 'climatic adaptive fa-cades' may point to architectural expres-sion in the future.

Nadja Ortner, an active QGBC com-mittee member from Ortner Consulting, addressed the serious subject of water scarcity in the Gulf region. She exam-ined the causes of this shortage and how the construction sector can respond, in both, reducing demand and examining methods of increasing supply by suitable treatment and reuse.

Held at the QGBC headquarters, these seminars aim at offering knowledge, expertise and guidance and are open to

members and non-members. As a mem-ber-driven organisation, QGBC will continue to conduct consensus-based programmes to serve the green building industry and will offer these seminars at discounted rate for its members, as part of its mission to spread awareness on the importance and benefits of Green Buildings.

QGBC is a non-profit organisation with a vision to provide leadership and collaboration for Qatar in guiding and adopting environmentally sustainable practices for green building design and development; and to support the health and sustainability of environment, peo-ple and economic security for genera-tions to come.

The Council's mission is to educate the public, generate and foster aware-ness among people, develop a de-finitive set of clear environmental and green building practice guidelines, and to support and commit to research and development. The initiative is sup-ported by Honorary President Her Highness Sheikha Mozah Bint Nasser Al-Missned, and Qatar Foundation for Education, Science and Community Development.

Updates on the organisation will be published in www.qatargbc.org.qa a site developed by ThinkScape Group as part of their CSR initiative, to help spread the green building message and reach out to QGBC stakeholders n

sustainable constRuction nEED FOR EnERGy AnD WATER COnSERVATiOn STRESSED AT QGBC SEMinAR


brakingnews 68. BUEnOS AiRES:

MORE ThAn jUST FAiR WinD

aston Martin has unveiled a new motorsport-inspired special edition; the V8 Vantage N420

which brings a new dimension of sport-ing prowess and dynamic ability to the V8 Vantage range. It is based upon the standard 4.7-litre, 420bhp, 180mph V8 Vantage and is available as a Coupè or Roadster with a six-speed manual or optional Sportshift automated manual

transmission. A generous standard specification and

some unique options ensure the special edition Vantage N420 is both exclusive and distinctive, while also offering a 27kg weight saving – achieved through the application of carbon fibre – over the standard V8 Vantage. Tailored for the most discerning and enthusiastic driv-ers, it is fitted with the normally optional

Sports Pack. This package combines re-vised springs, dampers and anti-roll bars for even more responsive and dynamic handling, while retaining the V8 Van-tage’s renowned poise, balance and long distance ability. Finally, a new sports exhaust system delivers a suitably rous-ing soundtrack. A new distinctive Aston Martin ‘Race Collection’ paint scheme is available as an option.

bMW Group Middle East saw sales increase 13% in the first half of the year with both BMW and MINI

brands witnessing double-digit growth. Across the 14 Middle East markets, the

premium automotive manufacturer de-livered 8,096 BMW and MINI vehicles to customers, signaling the underlying strength of both brands in the region. BMW’s flagship BMW 7 Series remained

the top selling model showing an in-crease of 16%; followed by the

BMW X6, a popular model in the Middle East, which achieved a growth of

6%. Meanwhile, the BMW X5, which

celebrates its 10th anniversa-ry in the Middle East this year, was the third biggest sell-

ing model with

1,266 cars sold. The strongest growth in the first half year was reported by the BMW Z4 with sales increasing 173%. Each of these models the BMW 7 Series, the BMW X6/ X5 and the BMW Z4 re-main the global market leaders in their re-spective segments.The new BMW 5 Series is a core product for BMW and combines sporting and elegant design, excellent comfort, the highest standard in efficiency in its class and sets the benchmark in driv-ing dynamics and safety having recently achieved five stars in the Euro NCap ve-hicle safety assesment programme.

The MINI brand will diversify over the next couple of years to include three new models with the first new vehicle, the MINI Countryman, arriving in the Middle East in January 2011.

ASTOn MARTin FLExES MUSCLES WiTh iTS V8 VAnTAGE n420

DOUBLE DiGiT GROWTh FOR BMW GROUP MiDDLE EAST


braking news

t he Megacity Vehicle (MCV) due to come onto the market in 2013 will be the world’s first volume-produced

vehicle with a passenger cell made from carbon. The LifeDrive architecture is set to open a new chapter in automotive lightweight design, practically offsetting the extra 250 to 350 kilograms of weight typically found in electrically powered vehicles.

The LifeDrive concept consists of two horizontally separated, independent mod-ules. The Drive module integrates the bat-tery, drive system and structural and crash functions into a single construction with-in the chassis. Its partner, the Life mod-ule, consists primarily of a high-strength

and extremely lightweight passenger cell made from carbon fibre reinforced plastic (CFRP).

The BMW Group is also aiming to be the force behind the best drive systems over the years ahead – systems boast-ing outstanding efficiency, performance and smoothness, even if it is electricity rather than fossil fuels that are converted into propulsion. To this end, the BMW Group is vigorously driving forward the technical development of electric power-trains. Electric vehicles not only provide a zero-local-emission and low-noise form of propulsion; their ability to deliver a totally new and extremely agile driving experience is also impressive.

nEW MAn TO DRiVE DAiMLER MiDDLE EASTd aimler AG has appointed Mike

Belk as the new President and CEO of Daimler Middle East &

Levant. He succeeds Nicholas Speeks, who has taken up the post of President and CEO of Mercedes-Benz Japan.

“With his vast experience in training, HR and After-Sales, Belk is perfectly suited for heading Daimler Middle East & Levant,” said Peter Alexander Trettin, President & CEO Daimler Central/East-ern Europe Africa & Asia.

t he 2010 edition of the Motor Show revealed three new spectacular mod-els from Peugeot, presented by Na-

has Group, the exclusive agent of Peu-geot in Syria and exhibitor of Peugeot’s latest and newest models.

Peugeot 3008, the first highly-sophis-ticated crossover by Peugeot, Peugeot 5008, a family car with the highest safety features, and Peugeot RCZ – a dazzling sports coupé with a powerful engine and a sporty allure – which won the 38th Nürburgring race.

Highlighting the importance of par-

ticipating in the exhibition, Jamal Sahl, General Manager of Peugeot’s Middle East Regional Office said, “Based on their trust in the Peugeot trademark, Peugeot lovers and customers are used to visiting our distinctive stand to get a look at the latest models. Our vehicles are admired and praised by many clients in the Middle East and particularly in Syria. They have absolute trust in its high reliability thanks to its outstanding designs and innova-tive technologies, as well as the excellent post-sale services and constant availabil-ity of original spare parts.”

BREAkinG nEW GROUnD WiTh MEGACiTy VEhiCLE

PEUGEOT’S STARS ShinE AT ThE SyRiAn inTERnATiOnAL MOTOR ShOW


braking news

ROLLS-ROyCE DOUBLES SALES in ThE MiDDLE EASTr olls-Royce Motor Cars marked re-

cord sales in the Middle East re-gion during the first half of 2010,

seeing an increase of 98% in comparison to the same period in 2009.

The importance of the Middle East is underpinned by the fact that four out of the top ten selling dealerships are located

in the region, the same number as in 2009.The top 10 selling Bespoke dealers are based on the Arabian peninsula as well. Abu Dhabi is selling globally the richest Bespoke specifications. Rolls-Royce Mo-tor Cars Doha has joined the worldwide Bespoke top 10 along with two other Middle East dealers. Bespoke is Rolls-

Royce's offer for a further individualisa-tion of the motor car beyond the option list. Rolls-Royce Motor Cars recently announced that due to unprecedented demand June saw the highest production figure for an individual month since 2003. All Phantom and Ghost models are sold out until September.

DEWiTT WATCh GETS QUEEn'S TOUCh

the Grand Finale of the mythical Queen's C u p was held at the Wind- sor Great

Park which was Jerome de Witt’s first major event as ‘Official Timekeeper’ of the Guards Polo Club.

On that occasion, De Witt presented to HM The Queen, a special commemorative DeWitt watch, specially designed for the occasion: a dazzling Dame de Pressy, fully set with dia-monds and with a pink alligator strap, along with the miniature logo of the Guards Polo Club, meticulously hand-reproduced on the sapphire crystal back of the watch.

The second timepiece designed for the 50th anniversary of the Queen’s Cup is a gentleman’s Tourbillon watch, with the logo reproduced on a small ‘applique plate’ positioned on the dial.

‘ThE OnE’ BLOOD DOnATiOn DRiVEAs part of the annual celebration of World Blood Donor Day on June 14, THE One Qatar team was in its fifth year of blood donation.

Instead of hosting a mobile blood donation clinic outside their Landmark Mall Theatre for a day as usual, THE One gave staff the freedom to visit the Hamad Medical Corpora-tion’s (HMC) Blood Donor Centre during their working hours throughout the month of June. Unfortunately, only 11 out of 25 volunteers qualified as many had recently been out of the country on vacation, hence not allowed to donate. Consider-ing that one unit of blood (450ml) can save up to three lives, the 4,950ml they donated could save as many as 33 lives; giv-ing individuals a second chance at life.

THE One Qatar said that it is proud to make a difference by giving blood and will continue to support Hamad Hospital in an effort to help raise awareness of the need for more donors.

iSPOT LAUnChES FiRST APPLE TRADE-in COnCEPT in QATARi Spot, Qatar’s leading Apple Premi-

um Reseller, announced the launch of a new concept of enabling Apple

users to trade-in their old versions for a new machine, for the first time in Qatar.

With the new trade-in campaign, Mac users now can easily upgrade to the latest generation Mac and also sell back their old machine to iSpot, saving on expense. Together with this campaign, iSpot will also be selling for the first time, Certified Refurbished Macs in Qatar for enthusi-asts who cannot afford the new and latest Macs. Commenting on this new initia-tive, Ali Bin Ali Group / ICT, Chief Op-erating Officer, Mohamad Al-Ebrik said “The cornerstone of our success has been the innovative approach we have adopted

to meet the changing needs of the cus-tomers and market. We are happy to be the first Apple Store in Qatar to introduce the specialised service of trade-in for Apple Computers. We believe that this will pave the way for many Mac enthusi-asts to adopt newer technology easily and with the selling of certified re -furbished machines, we will also be enabling others to own their dream Mac machine. iSpot will continue to empower the Apple user community in Qatar and will also take the lead in doing so.”

iSpot, a part of Ali Bin Ali Group in Qatar has been a catalyst of Apple tech-nology in the market for the last two years and today has successfully become the leading Apple Store in Qatar.

Mohamad Al-Ebrik, Chief Operating Officer of

Ali Bin Ali Group


74.ChADi zEnEDDinE:A PASSiOn FOR CinEMA

markeTwaTch

MiLLE 'WATChES' AS nADAL WinS WiMBLEDOn

MAnnAi hOME APPLiAnCES & ELECTROniCS hOnOURED WiTh TOP ELECTROLUx AWARDS

m annai Home Appliances & Electronics Division (HAED) received the prestigious Star Partner Plati-num Level awards, which recognises top global dis-

tributors who increase sales of White-Westinghouse household appliances annually, from Electrolux International at a ceremo-ny in Portugal.

In addition, for the second consecutive year Mannai HAED earned Platinum Star Partner status – the highest level in the Electrolux International programme.

Also, for the fifth year in a row, Mannai achieved the cov-eted Million Dollar Club award from White-Westinghouse. The award recognises major distributors who sell in excess of $1 million (QR3.65 million) worth of White-Westinghouse house-hold appliances.

For over three decades, Mannai has been the authorised White-Westinghouse distributor in Qatar, exceeding customer expectations by delivering high quality products and excellent after sales service

q atar International Environment Protection Expo – ecoQ, organised by Stallion Advertising and Exhibi-tions, will take place at the Exhibition Centre from

17 - 19 September, 2011 as announced at a recent press con-ference, led by Dr Saif Al-Hajari, Vice Chairperson, Qatar Foundation, Head of Friends of the Environment Centre, and Haitham Shehab, General Manager of Stallion Advertising and Exhibitions.

EcoQ will have global businesses and investors in the environmental and sustainability sectors, meeting the local and regional businesses, trade associations, government rep-resentatives, institutions, academics, and NGOs to discuss business ethics and corporate social responsibility towards the environment.

s porting the Richard Mille RM 027 tourbillon watch, the lightest me-chanical watch in the world, Rafael

Nadal clinched his eighth Grand Slam title at Wimbledon.

Richard Mille's encounter with Na-dal, two years back, had him impressed with the latter's personality, style and of course, his powerful game.

With Mille's innovative capacity, his watchmaker's technological knowledge and Nadal's patience in testing several

prototypes, Mille succeeded in his im-possible feat of making the lightest and toughest watch, weighing less than 20 grams including the strap, which Nadal accepted to wear during all matches.

The lightweight RM 027 tourbillon watch has survived the tests of Roland Garros and Wimbledon and now will re-appear on Nadal's wrist in August during the US Open, as the 24-year-old contin-ues to serve with a more than promising future.

L-R: Gioni Borsetti, President Electrolux Robert E El Cham, GM, Mannai Home Appliances and Electronics Division

Mario Lanna, Vice President Sales, Electrolux

Dr Saif Al-Hajari, Vice Chairperson, Qatar Foundation, Head of Friends of the Environment Centre, and

Haitham Shehab, General Manager of Stallion Advertising and Exhibitions.

ExhiBiTiOn FOR EnViROnMEnTAL AWAREnESS ‘ECOQ’ in 2011


markeT waTch

LG ELECTROniCS AnD ViDEO hOME /jUMBO ELECTROniCS inAUGURATES LG LiFESTyLE GALLERy & CORPORATE OFFiCE

Officials of LG Electronics and Video Home and Jumbo Electronics inaugurate the new LG Lifestyle Gallery and corporate office.

celebrating 30 years of service, LG Electronics, Video Home & Jumbo Electronics have launched their new LG Lifestyle Gallery

and corporate office. This ceremony marked the two firms bringing together their expertise to provide customers complete satisfaction in Qatar. The 16th LG Lifestyle Gallery, like the rest of the showrooms, lives up to its motto of let-ting people experience the products in a lifestyle environment.

This year saw the opening of three new Lifestyle Galleries to meet the demands of their high-end customers and at the same time introduce innovative lifestyle products to the existing customers. The first showroom was opened in the Das-man Centre at Airport Road in January, the second at the City Centre and the now the third showroom has been inaugurated as well.

From a single showroom to a chain of 15 showrooms to date, Video Home & Jumbo along with LG Electronics have become household names and are com-mitted to continue this trust with the con-tinuous support of their customers. The group is intending to launch their 17th showroom later this year.

Lifestyle Galleries are one of the largest dedicated LG Showrooms in Qatar that showcases an entire range of LG products under one roof. They are designed as a one-stop family destination with displays of the latest 3DTVs, LED TVs, DVD players, Air-Conditioners, Refrigerators, Mobile Phones, IT Products and Home Appliances range.

The new corporate complex has been exclusively designed and built as the base for their business domain. The ground floor and basement are designed for the showrooms – giving the custom-

ers the opportunity of experiencing LG’s comfortable lifestyle. The mezzanine and first floors house the corporate offices.

With over 30 years of experience gained as a preferred general electron-ics trading organisation in Qatar, Jumbo Electronics has grown into a multidimen-sional service/solutions provider, and will be formally launched under the name and style of JUMBO Electromech, in the near future.

JUMBO Electromech is a fully integrat-ed MEP Solutions provider with activi-ties including turnkey projects of HVAC, Plumbing, Electrical, Fire Alarm, Fire Protection and Safety Equipment, Built-in and Stand-alone Home Appliances.

JUMBO Technologies will be the Technology Solution Provider for the real estate sector providing Home Automa-tion, Solar Panels, LED Lighting, LED Screens, telecom-related solutions.


markeT waTch

FiRST ‘zERO VOC’ SiGMA PAinT in QATAR. s igma Paints Qatar introduced its first Zero ‘0’ VOC eco-

friendly paint in the Middle East at a special ceremony held at Al Majlis auditorium at the Sheraton Hotel Doha.

Sigmacryl Ecoplus is water-based, odorless and dries quickly and is suitable for use in hospitals, schools, universities and homes. It is a clean paint, free of organic compounds and all material harmful to nature and human health

Sigmacryl Ecoplus exceeds all current legislation covering VOC’s in paints by having 0% VOC and the ECO-LABEL ‘The Flower’ which stands for a unique certification meeting the strictest environmental rules in Europe, making it the most sustainable paint concept in the Middle East today.

hiSTORiC GLOBAL FiLM ExPERiMEnT WiTh ‘yOUTUBE’

y ouTube joined world famous filmmakers Ridley Scott and Kevin

Mac Donald, asking people around the world to help them create the first user- generated feature-length documentary film shot on a single day – July 24, 2010. ‘Life in a Day’ is a historic global film experiment that enlists the global commu-nity to capture a moment of their lives on July 24 and to upload that footage to www.youtube.com/lifeinaday.

Individuals whose footage makes it into the finished film will be credited as co-directors and 20 of these contributors will be flown to the 2011 Sundance Film Festival for the film’s world premiere.

‘Life in a Day’ is one of several efforts by YouTube to push the boundaries of music, art, and now film by converging on-line video with traditional arts. LG Electronics is supporting this initiative which is consistent with their brand promise of ‘Life’s Good’!

CGC WinS FOURTh AWARD

c onsolidated Gulf Company (CGC), the leading technol-ogy conglomerate in Qatar, won the Best Nokia Distribu-tor Award for the fourth time for its overall excellent

performance, sustained growth, quality services, brand position-ing, strong market share and loyalty generation, during the year 2009.

Anil Mahajan, COO, CGC, received the coveted award from Chris Braam, Vice President, and Ian Stewart, Director, Cus-tomer Care, Nokia MENA, at a ceremony held in Budapest, Hungary, recently. Mahajan thanked the people of Qatar for their cooperation and also appreciated the contribution of the entire CGC-Nokia team for their untiring efforts.

BOCOnCEPT GOES MULTiFUnCTiOnAL

b oConcept, known for its modern design home furnish-ings, has come up with a range of multifunctional home furniture pieces which optimise space.

Coffee table tops can be lifted into a higher position, trans-forming the table into a perfect place for TV dinners and late-night work or it could be extended to provide extra seating space. Beds are also available with under-bed drawers or can even be tilted to reveal a spacious storage compartment.

Anil Mahajan, COO, CGC, received the coveted awards from Chris Braam, Vice President, and

Ian Stewart, Director, Customer Care.


markeT waTch


gLobe TroT


gLobe TroT

a week is not enough. And I sincerely doubt if even a month would do, to take in all that Argentina has to of-fer. After the first few days there, you begin to wonder if the whole country is on something illegal – how can just about every person you meet be upbeat, funny (if a bit self-deprecatory), good-looking and well-groomed?

Then just to ensure that you didn't doubt their reality, you run into creepy cabbies. (Which begs the question, are there cabbies anywhere in the world who are not a. annoying; b. creepy; c. rude?)

We are told that some perfect-looking creatures may have had a little help from Dr Scalpel and Nurse Botox. But my pedestrian observation is that much of the attitude, the poise and flair for good clothing are all thanks to the rich gene pool created over centuries of foreign influences.

Entertainment, sports, good food and a nice group of people to hang out with – if only it were not so far from much of the world and not so expen-sive to get there, Argentina would be overrun with tourists. Now it attracts just about two million tourists annually, a majority of whom are from the US. For the eighth-largest nation in the world with the kind of attractions it has to offer, that's a few million too few.

In 2009, Argentina received almost two million foreign tourists (14% fewer than in 2008) who spent an estimated $2.7 billion. On the other hand, five million Argentines travelled overseas and spent $4.4 billion, which is a billion dollars higher than what incoming tourism left in the country, according to official Argentine statistics.

buenos aiResmoRe than just faiR wind

By Vani Saraswathi


gLobe TroT

GETTinG ThEREQatar Airways flies daily to Buenos Aires via Sao Paulo. So if you have time on your hands, covering both countries would be a good move.The airline hosted journalists from the region and the Far East to fly to the two destinations on its inaugural flight. With these two, Qatar Airways international network is up to 92 destinations across six continents.

Qatar Airways Chief Executive Officer Akbar Al-Baker with

government and airport officials at an airline-hosted reception at Buenos Aires International

Airport.

WhERE TO STAy Palacio Duhau - Park Hyatt Buenos Aires Located in the fashionable Recoleta shopping and residential district, it combines a restored Palace with the new Posadas building. The Palacio Duhau was built in 1934 by French architect Leon Dourge, and is one of the few remaining palaces represent-ing the city's traditional and exclu-sive Portena aristocracy.www.buenosaires.park.hyatt.com

Estancia VillaMaria, Equestrian & Golf Estates ResortLocated only 15 minutes from Ezeiza International Airport, the 624 hectare estancia would serve well as a weekend getaway. While there you can take in some polo lessons, or just spend you day at the golf course.Email: [email protected]

Alvear Palace Hotel www.alvearpalace.com

Getting there is no doubt an expensive, tiring and time-consuming exercise. Unless you are a journalist on an all-expenses paid business class passage in a five-star airline (more of that later).If geared-up right, the almost-18-hour-long flight from this part of the world need not necessarily be torturous. But then, the first thing that will hit you, as it did the bedraggled bunch of us on arrival at Buenos Aires is the display of skinny jeans tucked into glamorous boots. A knee-length leather extravaganza smartens up any out-fit, it seems. All we wanted to do was es-cape into the confines of a hotel room, and

emerge in something a little more elegant than flip-flops, tracks and tees.

Of course, we didn't realise that before we could find solace in our rooms, we had to get past the imposing corridors of the Palacio Duhau - Park Hyatt Buenos Aires, an erstwhile palace, still resplendent and reeking of history.

History on showFor those of us coming from the land of sparkling new, largest, tallest and shiniest, Buenos Aires is refreshingly well-aged – that's the difference; but it is extrava-

A view of the palace side of Park Hyatt

The bustling San Telmo area

The mothers of missing people staging their weekly march


gLobe TroT

TAkES TWO TO... Sometimes, not. Ask the average Argentine if he or she tangos, and the answer is likely to be ‘no’.

The older generation did and still do tango, but the younger lot bred on discotheque culture look at it as an art that only some learn to perform. It's not the dance of the masses, it seems.

While tango performers can be seen in many squares and streets like La Boca, it would be a good idea to go for a proper tango show.

We went to the Carlos Gardel Tango show, where the split-level stage houses a live band above and the tango dancers below.

gant and ostentatious too, and that's the similarity. Even regular buildings boast of exaggerated domes and intricate pil-lars. And nowhere else is the need for that show more visible than in the La Recoleta Cemetery, where Eva Peron finally found a resting place.

A guided tour of the cemetery is akin to a brief course on the sometimes bloody and often disruptive history of the nation. The details of that history are to be found in how the northern and southern parts of the town are laid out (one catering to more recent immigrants and the other to

the elite), in the Spanish architecture rub-bing shoulders with French and English influences, and from sculpted memorials at crossroads.

Spanish invasion, the hope of mountains of silver (giving the country its name), military coups, exiles, civil unrests, an at-tempt to first disassociate from the Span-ish past and then to embrace it, the cult of Juan Peron and now an active democ-racy... some say Argentina has achieved a lot despite its troubles, while the naysayers claim that despite its achievements it flirts with trouble all the time.

At the Carlos Gardel Tango Show

Old mausoleums in the famous Recoleta Cemetery-

Typical Argentinian artwork called fileteado

Tango on the streets, where service staff double as

entertainers

The crypt outside which Eva Peron is buried. The crypt belongs to her sister-in-law's family

An Argentine staple -- a brew of Yerba Mate which is served in a calabash made of gourd,

wood or leather. The metal or bamboo straw is called

bombillas

Old mausoleums in the famous Recoleta Cemetery


gLobe TroT

CAREER OPTiOnEarning pocket money? Extra in-come? Maybe a career choice? Dog walking seems to be a popular voca-tion. Everywhere – no exaggeration – you turn, you will find backpack toting dog-walkers with fists tightly around at least half a dozen leashes.

Buenos Aires breathes through its sprawling green expanses of parks, meant for both man and his best friend.

It takes a little getting used to, all those well-disciplined fellas walking around, and not showing any inclination to nip at their walk buddies.

BEWARE!Just as you would be anywhere else.We were given a flyer by the hotel that listed ‘suggestions’ when walk-ing around Buenos Aires. Not something you should give faint-hearted guests visiting the country for the first time.“If you are attacked, do not resist,” “Be attentive when using public transport” and “do not accept help from strangers for supposed ‘stains’ on clothing, etc.” the flyer warned.A good set of rules to follow wher-ever you may travel.But I guess what distinguishes the Argentine thief is his brand con-sciousness: “Thieves can come by on motorcycles to grab watches (mostly Rolex) and purses.”

Finally a reason to feel good that I don't own a Rolex.

Madres de Plaza de Mayo The May Square, the main square down-town, is where much of that ‘trouble’ or political movement finds a voice. Since the revolution in May 1810, Plaza de Mayo continues to be the main site for po-litical demonstrations and gatherings. To date, weekly, mothers and grandmothers of those who disappeared during the mili-tary dictatorship between 1976 and 1983 (the Dirty War) march in the square.

While hopes of reuniting with their ab-ducted children have all but vanished, they continue to march seeking recognition of the losses and demanding an apology.

Many children born in prison were given away in adoption. Now, a campaign calls for those who doubt their parentage to submit to DNA testing, to be reunited with their biological families. The Madres movement stands for more that what it started out to be. It is one of the strongest human rights movements in the world.

A complete fest – food, shopping and entertainmentWhile all that contributes to a thrilling historical tour of the city, the experience is incomplete without the Argentine staples – food (steaks, empanadas and dolce de leche), tango, polo, ranches, matte (a local tea), football (including

Maradona look-alikes and wannabes). The one place where you can savour most of those is at La Boca, where an af-ternoon must be dedicated to the colour-ful, festive cobble-stoned streets that fan out in a triangular formation. Touristy souvenirs, bargains, tango on the pave-ments, thirst quenchers, crispy empana-das, street performers and artists all con-spire in setting apart La Boca from what lies in the neighbourhood surrounding it.When a crabby cabbie off-loaded the bunch of us in an alley abutting La Boca (because we enquired about receipt for the fare), we saw firsthand what we'd rather have not. Eerily deserted streets, decrepit buildings, and ‘get-out-of-here-quick’ vibe in the air.

San Telmo, one of the oldest neigh-bourhoods in the city, is a must visit as well. There, in quaint courtyards and boutiques can be found antique furni-ture and curios. In the squares, pretty and inexpensive jewellery handcrafted by the indigenous people can be had at a bargain. While we are on shopping, get your hands on some leather. Factory out-lets are cheaper, but you need an insider to get you to a good one.

It is slightly preposterous to attempt a travelogue after only a sniff of the goods, so treat it as a sampler n

The daily rounds

The Casa Rosada, presidential palace


gLobe TroT

Argentina is a long sprawling country, with terrains and attractions in every province. We flew north on Austral (the national airline) to the Brazilian border for a break from the city.

The Iguazu National Park and Water-falls is one of the contenders for the new seven natural wonders contest.

Straddling three countries – Brazil, Argentina, Paruguay – the national park covering an area of 67,620 hectares, boasts of over 2000 varieties of native flora species, 450 bird species, 80 species of mammals and 275 waterfalls.

The waterfalls however only cover Brazil and Argentina. Standing at the majestic and aptly named Devil's Throat – the highest and biggest of the group of waterfalls – one can have a view of Brazil

through the mist of water.Iguazu is the right fix for those seeking

adventure. In the national park, canopy-ing and rappelling can be tried. And at the falls, long hiking trails, rafting and a rather scary speedboat ride into the cur-tain of water are not to be missed. Keep your camera handy, because you never know when a rainbow will present itself. We landed in Iguazu on the day Argentina took on Mexico in the pre-quarterfinal match. And the guide who took us around the national park made it amply clear what a huge sacrifice he had made by choosing to be with a bunch of awestruck tourists, instead of watching his national team get to the semi-finals. I for one am glad that I was nowhere in Argentina or near an Argentine during the quarterfinals.

WhERE TO STAy Iguazu Grand Resort Spa & CasinoThe hotel is a mere 10 minutes from the Puerto Iguazu airport and 15 minutes from the National Park.It has a Casino, Cafe Magic – French-style theatre featuring eve-ning shows, spa and play areas, that makes it ideal for a family vacationEmail: [email protected]

The Great Adventure speed boat ride into the falls

Iguazu Grand Resort Spa & Casino

A majestic view of one of the many cataratas

Quatis are common to the area.

Rapelling in the national park area

A eco train ride through the national park

Iguazu A DAy WiTh ThE RAinBOWS


doha diary

I f there is one word to describe Chadi Zeneddine, the Lebanese film maker who has joined Doha Film Institute's (DFI) education team, it would be ‘passionate’.

But even that word seems inadequate to convey the ardour he exudes as he sprints down from first floor of W Hotel to the lobby for our interview. At 30 and just one movie old, and a lot more in the pipeline, Zeneddine is excited about a lot of things. Most exciting among them was the ongoing one-minute film work-shop he just completed at Doha. He sits down to coffee and conversation with

Qatar Today on a subject that is close to his heart – cinema.

For the love of the gameDFI provided film and football enthusi-asts with a creative way to express their passion for the sport, with a one-minute film workshop mentored by Zeneddine, aptly called ‘For the Love of the Game’. The films created during the workshop were screened on July 11 before the final game of the FIFA World Cup at the Qatar 2022 Bid Fan Zone in Souq Waqif.

Zeneddine sums up the workshop as a ‘great human experience’.

a Passion foR cinema

By Sindhu Nair

ThESE ARE My FAVOURiTES...

Zeneddine has a list of favourites and he is inspired by these great

movie makers:“Andrei Tarkovsky, Federico

Fellini, Stanley Kubrick, Ingmar Bergmam and Alfred Hitchcock

are my all time favourites and their movies are my kind of movies.”

Chadi Zeneddine, The Lebanese film maker who has joined Doha Film Institute's education team

AUGUST 10 Qatar Today 77 jULy 10 Qatar Today 77

doha diary

“I was a bit sceptical when DFI first told me about this project. I was wonder-ing what could be achieved in such a short time frame. But I was pleasantly surprised how it shaped through. Now I understand why this is important. One can be from any background, language or country, but the language of creativity and the passion to learn the craft unifies all. The partici-pants were from various backgrounds and age groups, but the passion and dedica-tion they had unified them.”

Explaining the process of film educa-tion in this exercise, he says, “The stu-dents come with a story idea and they learn how to pitch, they learn to write the script, about the concept of storyboard, the equipment. We picked seven films this time as these were ready. All the seven

stories are different; one was an anima-tion, a mix animation, comedy, and one a romantic comedy.”

The industryThe Middle East film industry is growing. “The world is ready to hear stories from

the Arab world and we are getting ready to tell them. It is history in the making for the industry. There is so much talent here now.”

In 2009, he was a jury member for the Abu Dhabi Middle East International Film Festival and that he says was a “proud mo-ment”.

His advice to the young aspiring film makers is to have a good script ready.

“If you have a good script, that is half the job done.”

“This is my first office job,” he says speaking about DFI, describing it as a “hub for cinema, a place where talents meet.”

“I am in the midst of great talent, from DFI's Executive Director Amanda Palmer to Scandar Copti, Head of DFI's educa-tional team and DTFF Programmer.”

“The youngest partici-pant was an 11-year-old Indian boy and the old-est a 40-year-old French woman. This is richness and it is this diversity that I associate Qatar with.”

ExPERiEnCES in MOViE MAkinG Two weeks of workshop at DFI and the team had seven one-minute long films ready.

“There were 20 participants and we chose just seven of them. The youngest participant was an 11-year-old Indian boy and the oldest a 40-year-old French man. This is richness and it is this di-versity that I associate Qatar with.”

Mohammed Moukasem, the 11-year-old, had a simple narrative in his movie. It was an animation called The Football Match with two figures, made of match sticks, playing the match.

My personal favourite was the com-edy, Serious Business, by Hisham El Bassiouni, which showed a typical of-fice with all the employees hooked to the game.

El Bassiouni is a Project Manager for a Construction Company in Qatar. He terms this experience as unforgettable and one from which he has learnt a lot and is willing to have another stint at the work-shop, just for the experience factor. He says, “It involves a lot of work and stress, and if you can't feel the excitement you won't have the energy to go on and give it all you have.”

Nouf Al-Thani, 26, is a Qatari and an accountant by profession. She was the co-director with Jawaher Al-Thani of Beyond Football.

For her, the experience was inspiring. She says, “Ever

since I was little I used to make up stories but never translated that into the real thing except in paintings. But recently, when I started writing novels, I wanted to experience film-making because in my opinion they are connected.”

And for her, simplicity is the key to success. Jawaher Al -Thani feels that story structure is most important whether it's one-minute movie or a 120-minute movie.

“If the film hasn't been structured well, there would be no meaning to it.”

Workshop at DFI


doha diary

For the love of the mediumFor most, there is one defining moment when you know for sure what you are destined to do in life. For Zeneddine, that moment arrived early, but it didn't take distinct shape until much later.

“I always knew I would do something artistic, be it in architecture, painting, theatre or dance. I knew it would be a creative medium.”

It was his brother, who was obsessed with being an actor, who guided him to the path of film-making.

“When my brother came from France to Gabon, Africa (where we lived), he was so obsessed with being an actor. I was constantly filming him and then I made up my mind to keep doing the same, filming, but of course on different subjects.”

It was while doing his Masters degree in Film and Video studies that Zeneddine was all set to put his foot into the world of cinema.

“It was while I was finishing my Mas-ters that I began shooting for my first fea-ture film, in a 35mm format. The movie, Falling from Earth took me three years and a half to make though it involved only 25 days of shoot because I didn't have any money to make it faster.”

Zeneddine attributes all his achieve-ments and the grey hairs dotting his head to this movie.

“I gave it all I had. My parents funded me, the actors acted for free. I was the

director, the writer, the producer, the press attache' – all rolled into one. But the effort paid off. The movie opened doors to me. It was taken to 24 festivals all over the world.”

The movie also paved way to his next BIG project, one that seems to be almost like a ‘dream come true’. A project signed with Walt Disney International Pictures for The Last of the Storytellers, the first ever fairy tale set in the Arab World with Zeneddine as a writer and director.

“It's about a traditional hakawati and a modern adaptation of Sheherazade, Ali Baba and Antar.”

Narrating the story, he says, “The movie is about an imaginary world par-allel to the Arab world. It is the story of Ibrahim, a boy who lives in a village called Gabbarra. His father is a story teller who gathers all the children and tells them stories of Laila Majnu, Aliba-ba, Sheherezade and other stories of the region. Ibrahim asks his father for the se-cret behind his story-telling capabilities and then the adventure begins.

As the story is being narrated, the pas-sion that gleams in Zeneddine's eyes is infectious and the fairytale seems eerily real.

The movie is all about believing in your dreams, he says and then you know that the story is close to the writer's heart. And in Zeneddine, you can see the young Ibrahim, the boy with dreams of telling stories... n

DFI PlansAccording to Amanda Palmer, DFI plans to provide financing and other support for new films from the Arab world, assisting filmmakers from conception to production and distri-bution, to the promotion and adver-tising of their finished work. DFI's film financing team has already re-ceived a number of strong scripts and plans to finance 10 films in the region each year, which will create new opportunities in the Middle East and establish Qatar as a filmmaking centre.

To identify and foster new talent, DFI's educational team, headed by Oscar-nominated Palestinian Direc-tor Scandar Copti, has an ambitious 12-month calendar of workshops both in Qatar and as far away as Africa and the United States, aimed at inspiring and empowering the next generation of Qatari, regional and international filmmakers. From an immersive se-ries of screenwriting, directing and filmmaking courses to providing mentorships in acting, sound design, animation and video art, DFI is en-abling both aspiring members of the film industry as well as residents with a passion for film to learn the business of film firsthand, conferring hands-on skills and experience.


dohadiary 10.101010 0101010 10010

100010 10101 001080. MOnEy-MAkinG VS MOnEy-EATinG

t he Qatar 2022 Bid Committee hosted an exclusive Middle East premiere of ‘Pelada’, an American football documentary, at the Fan

Carnival at Souq Waqif.“The documentary captures the love of

the game”, said Ryan White, Director, re-lating it to his way of supporting the Qatar

2022 bid. Pelada is a documentary following Luke and Gwendolyn, former college soccer players, chasing the

game across 25 countries, reflecting an-other side of soccer – from prisoners in Bolivia to moonshine brewers in Kenya, from freestylers in China to women who play in hijab in Iran – a story of the people who play.

In Brazil, ‘pelada’, means ‘naked’, the game stripped down to its core, played

with no rules, no uniforms thus apt as the title.

White mentioned of occasions which required them to travel through dangerous neighbourhoods, but were well-protected by the people. According to White, his best experience was filming in Bolivia, where they bribed their way into a Boliv-ian prison to play the game. The inspira-tion behind this documentary was the idea of showcasing people’s love for soccer, though White admits that he was never a football player himself.

Summer feStival beginS

d oha Summer Fun Park – an eight-week festival of summer events – organised by Qatar Tourism Authority (QTA)

opened on June 20 at the Doha Exhibi-tion Centre. The series of events will run till September 14.

The festival is set to act as an incen-tive for families to visit during the sum-mer holidays. The event is expected to at-tract over 250,000 visitors over the period from both Doha and other countries in the GCC region.

The Doha Summer Fun Park is one of the many activities lined up by the QTA as part of the overall tourism strategy for Qatar, which aims at entertaining locals, residents and regional visitors.

Ahmed Al-Nuaimi, Chairman of QTA, stresses that developing domestic tourism

is just as important as international tour-ism for Qatar. “Relying on international tourism alone is not enough. As we have seen even in the last 12 months, there are many unforeseen circumstances – natu-ral and economic – that can affect inter-national tourism, reflecting a decline in foreign visitors.”

Doha Summer Fun Park is offering many age-appropriate rides and attractions featuring for the first time in Qatar. In addi-tion, there are restaurants serving a variety of foods from different cultures including, Middle Eastern, Asian and Indian cuisines. There is also a section for shops offering family and household items for sale.

‘Pelada’ – football documentary PremiereS at Souq Waqif


doha diary

doha is all set to be a cinematic hub, thanks to an ambitious chain of activities planned by the Doha Film Institute (DFI).

DFI is Qatar’s first international organi-sation dedicated to film appreciation, film education, and to building a sustainable film industry in the region.

At an event in Qatar, DFI members pro-vided an overview of the exciting activities planned for the coming months, including educational workshops, community pro-gramming, cultural exchanges and the an-nual Doha Tribeca Film Festival (DTFF), set to take place in October this year.DFI, Executive Director, Amanda Palmer said “DFI has four key areas of focus – educa-

tion, production, financing, and the annual Doha Tribeca Film Festival, a platform for emerging and established filmmakers.”

Present at the event with Palmer were

Scandar Copti, Education Director, DFI and Lebanese filmmaker Chadi Zened-dine, who are involved in the education workshops.

interntional StarS rock at ‘deSert fuSion’

d esert Fusion 2010’, a show organised by Qtel and Virgin Megastore, featured Bollywood singing sensation Atif Aslam, at

the Ritz-Carlton’s Island, and had more than 5,000 die-hard fans screaming for more.

Atif Aslam, a leading singer from Pakistan, had shot to fame after lending his magical voice to several Bollywood movie songs, each turning out to be chartbusters.

The show, in association with Dot Vi-sion (Doha) and Milestone Entertainment (Dubai), featured Aslam along with ac-claimed international artists, Lebanese singer Brigitte Yaghi and leading Middle- East Asian DJ Zubair. The soulful voices were mixed and jammed sparking off a vibrant mood among the audience who cheered throughout the show.

The first Desert Fusion in Dubai was a phenomenal success, attracting more than 3,000 fans and Doha met with the

same success, with over 5,000 fans in attendance.

Qtel was the sponsor for the event as part of its ongoing Summer Fun campaign.

qPo PerformS final concert The Qatar Philharmonic Orchestra (QPO) performed the final concert of their cur-rent season at the Aspire Ladies Hall with the performance of ‘Solo Masterpieces’, featuring a programme of romantic and late romantic works. QPO music director, Nader Abbassi led the orchestra featuring seven soloists.

The programme commenced with the ode of Rossini’s ‘Barber of Seville’, fol-lowed by a piece called ‘Rossini Fantasy for Cello, Double Bass and Orchestra’ by Bottesini. Hassan Moatez el-Molla played the cello solo, while Choul-Won Pyun played the solo double bass.

The first half of the evening had the audience enchanted with the perfor-mances of Anca Florina Bold, the solo viola player. Puccini’s Preludio Sinfo-nico, followed by two QPO flutists per-forming Doppler’s Andante and Rondo carried forward the magic for the rest of the show. The final piece of the evening featured violinist Dmitri Torchinsky, who performed Ravel’s ‘Tzigane for Violin and Orchestra’.

The QPO’s season for 2010-2011 will commence on October 10.

L-R: Chadi Zeneddine, Lebanese filmmaker, Amanda Palmer, Executive Director, DFI and Scandar Copti, Education Director, DFI

Atif Aslam, Bollywood singing sensation

dfi outlineS film feStival


number game

moneY-maKing vs moneY-eatingfinancial cRisis might have encomPassed countRies all oveR the globe. but the foRtunate few, who bRaced the stoRm, have successfullY made it to the list of

‘The besT counTries for business’

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sourCe: fORbEs.cOM

1. denmark

6. uniTed kingdom

2. uniTed sTaTes

7. sweden

3. Canada

8. ausTralia

4. singapore

9. hong kong

5. new Zealand

10. norway

Chad kyrgyZsTan aZerbaijan VeneZuela Cambodia eCuador Zimbabwe

‘The mosT corrupT counTries’

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retailers of luxury

highend goods

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