the edge - may 2012 (issue 33)

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CONTENTSw w w . t h e e d g e . m e 2012

CONTENTS

ON THE COVERMeet ‘Generation Y’, the latest generation to join the workforce. Are they really as frustrating as their Baby Boomer and Generation X managers think? Deborah Rogers takes a closer look at the challenges facing managers and recruiters, since for the first time all three generations are in the workforce simultaneously. (2)

MARKET WATCHThe stability witnessed in the euro area has been short-lived thanks to Spain’s economic turbulence.

BALANCE SHEET How talent planning and acquisition impacts an organisation.

SPECIAL REPORTThomas Bacon investigates Qatar’s investment performance.

PERSONAL FINANCEAdrian Bliss explains how to ensure your finances are fit.

ECONOMIC BAROMETERQatar’s 2012 budget delay.

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FINANCE & ECONOMICS

FEAturESIN THE SPOTLIGHTIs Qatar the ‘Switzerland of the Middle East’?

BUSINESS INTERVIEW A special interview with HSBC’s CEO, Mostafawi.

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.62. BUSINESS MANAGEMENT Bring out the best in an employee.

KNOWLEDGE & EXPErtISE

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PRODUCTIVITY AND WELLBEINGHow to best reward an employee’s performance.

LEGAL INSIGHTQatari Withholding Tax Law.

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CONTENTS

BuSINESS INSIGhtTheEDGE speaks with Rohan Marwaha, managing director of Cityscape about what the exhibition will offer and why now is the ideal time to debut Cityscape Qatar.

TheEDGE chats exclusively with Yahoo!’s privacy expert, Justin Weiss, about steps taken to protect information online.

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FROM THE EDITORCONTRIBUTORSFEEDBACKNEWS ETCETERAQATAR IMPACTENERGY AND RESEARCHCOUNTRY FOCUSOPINIONTRAVEL AND LIFESTYLE

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fROmTHE EDITOR

Two key areas of business are of course the management of budgets and people, two themes of this issue of TheEDGE.

When it comes to the former, as most countries in the Gulf Cooperation Council have released or are about to release their annual budgets, Qatar’s draws into focus. Delayed from April to May for various reasons, on page 42 Karim Nakhle takes a detailed look at where the Qatari government is most likely to allocate public funds in the country for the following year, and how this might affect the economy as a whole. Staying on a financial footing, TheEDGE recently interviewed Abdul Hakeem Mostafawi, Qatar-born-and-bred chief executive officer of HSBC, one of only two large international banks operating in the country on a large scale and retail level. Mostafawi had some frank recollections as to what motivated him to achieve this position (the first Qatari to do so) and valuable input into how the country’s banking and overall economic sector is faring at present (p56).Also in the economic vein, in our regular Personal Finance column, Adrian Bliss takes a look at what expatriates need to know when it comes to personal tax requirements and financial planning in their home country (p40). Then on page 66, in our Legal Insight column, Ben Moylan and Garrett Grennan examine the new Qatari tax law, particularly when it comes to its application in relation to the deduction of withholding tax, which is certainly an interesting new development in the country.But what good is a sound budget and tax regimen without decent people in your organisation? In our cover story on page 52, Deborah Rogers, the director of human resources (HR) at the Qatar

FROM

theEDGE is printed monthly © 2012 Firefly Communications. All material strictly copyright and all rights reserved. reproduction in whole or in part, without the prior written permission of Firefly Communications, is strictly forbidden. All content is believed to be factual at the time of publication. views expressed by contributors are their own derived opinions and not necessarily endorsed by theEDGE or Firefly Communications. No responsibility or liability is accepted by the editorial staff or the publishers for any loss occasioned to any individual or company, legal or physical, acting or refraining from action as a result of any statement, fact, figure, expression of opinion or belief contained in theEDGE. the publisher (Firefly Communications) does not officially endorse any advertising or advertorial content for third party products. Photography/image credits and copyright, where not specifically stated, are that of Shutterstock and/or iStock Photo or Firefly Communications.

PUBlICaTIONS dIRECTOR Mohamed [email protected]

maNaGING EdITORMiles [email protected]

dEPUTy EdITORErika Widé[email protected]

REGIONal SalES dIRECTORJulia [email protected]+974 66880228

hEad OF BUSINESS SalES Emma Land [email protected]+974 33197446

SalES maNaGERSAchraf Mannai [email protected]+974 55127480Joseph [email protected]+974 33675301

dISTRIBUTION & SUBSCRIPTIONSAzqa [email protected]+974 55692471

CREaTIVE dIRECTORRoula Zinati Ayoub

aRT dIRECTIONLara Nakhlé

dESIGN COORdINaTIONSarah Jabari

FINalISERMichael Logaring

PhOTOGRaPhERHerbert villadelrey

PRINTEd ByAli Bin Ali Printing Press, Doha, Qatar

National Convention Centre, investigates a phenomenon that has only recently begun to show itself, but will no doubt influence workplace dynamics for many years to come. This is the fact that for the first time, the three main post-World War Two generations are working together. Focusing on the youngest, ‘Generation Y’, Rogers concludes that while there are many challenges in getting these three groups together, it is not impossible and all businesses must learn to adapt to the different values and work ethics of young people, tens of millions of whom will enter the workforce in the next decade.HR also features in an interesting article by Ryan Peden of Educate Learning Center, who offers the opinion that improving interstaff communication skills, particularly using English as a common language, in Doha’s businesses may have a profound effect on sales and profitability (p30). Kanchan Ghoshal then argues that planning for talent in organisations is a key contributor to the bottom line and is one that should not be overlooked (p36). Finally, on page 62, Julian Birkinshaw picks up where Ghoshal leaves off and discusses how to most effectively manage your employees.Other interesting articles in the issue include our Business Insights on page 69, one of which is with Justin Weiss, who is a digital privacy expert from Internet service provider, Yahoo!, and the other with Rohan Marwaha of Cityscape, the successful Middle Eastern real estate event which is coming to Doha for the first time in 2012.

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THE EDITOR

Miles Masterson, Managing Editor

Firefly CommunicationsPO Box 11596, Doha , Qatartel: +974 44340360Fax: +974 44340359www.firefly-me.com

CONTRIBUTORS

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CONTRIBUTORS

PG. 66GaRRETT GRENNaNDirectorErnst & Young Doha, Qatar

PG. 76VICTORIa SCOTTJournalistDoha, Qatar

PG. 36KaNChaN GhOChalDirector, People & Change Advisory KPMGDoha, Qatar

PG. 30RyaN PEdENChief Executive OfficerEducate Learning CenterDoha, Qatar

PG. 23jamIE STEwaRTInternational CorrespondentLondon, United Kingdom

PG. 34dhEERaj ShahdadPURIAnalystDubai, UAE

PG. 66BEN mOylaNSenior AssociateSNR Denton Doha, Qatar

PG. 64laUREN PENNyHuman Resource Wellness and Engagement ConsultantFreelanceDoha, Qatar

PG. 52dEBORah ROGERSDirector of Human ResourcesQatar National Convention CentreDoha, Qatar

PG. 62jUlIaN BIRKINShaw Business Management Consultant London Business SchoolLondon, United Kingdom

PG. 48maRTIN RIVERSJournalist for aviation consultancy AscendrDoha, Qatar

P. 40 adRIaN BlISSSenior Financial ConsultantGuardian Wealth ManagementDoha, Qatar

PG. 42KaRIm NaKhlE Senior Business StrategistDoha, Qatar

PG. 38ThOmaS BaCONAnalystOxford Business GroupIstanbul, Turkey

About TheEDGE:theEDGE is an ambitious business magazine targeting professionals operating within Qatar’s multi-sector business landscape. Printed monthly, theEDGE was launched in July 2009 to fill the market void and to provide the business community with insight into the latest business trends and market developments. theEDGE is distributed 11 times yearly to a readership base of more than 7500 professionals, providing advertisers with the needed additional reach and frequency to their most important and affluent audience. theEDGE is an authoritative business resource serving both large and small business operators. Please e-mail [email protected] should you wish to contribute.

ThEEdGE ONlINE SURVEy aPRIl 2012In April 2012 we ask our website visitors and facebook group members:

aPRIl ONlINE SURVEy QUESTION: Is Qatar’s diplomatic involvement in Syria and elsewhere a good thing for the country’s profile in the world?

Overall Online Survey Result: 100 percent YesNo doubt about this one this month: 100 percent of our social media followers and website visitors feel that Doha’s diplomatic act is sound and will benefit the country. For more on the topic please read our feature on page 48. Please log onto our website or visit our Facebook page to vote in our May survey.

READER fEEDBACk

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FEEdBaCKREACTION IN THE FORM OF LETTERS AND E-MAILS FROM THEEDGE READERS, AS WELL AS RANDOM INFORMATION FROM OUR SOCIAL MEDIA PAGES.

BaCKChaT – lETTERS FROmKONy 2012Dear TheEDGE, many thanks for the article on Joseph Kony. I am originally from central Africa so I knew of him, but not much. Like many, I was outraged when I first watched this film on the Internet, but when I had time to reflect on what effect this had, I realised that it was perhaps not as great or groundbreaking as it had first seemed, something that was brought home more when I saw all the media attention it got. But I must say I thought that TheEDGE covered this issue very well. I liked how you referenced the Arab Spring and the Gulf region. Social media is a powerful tool for bringing about social change and marketing, but only if it is done right, as your article pointed out.African Expat, Doha, via email

Small ROOTSTo TheEDGE, could you please do an investigation into the plight of manual workers and other domestic help like maids in Qatar? We know that Qatar has made some strides in improving the lives of these people, something that was a part of the talks when the Emir visited India recently. But how much have the lives of these people really become better? Stories of non-payment, violence and other abuses still surface from time to time and it would be good to know if these are still going on or if they are just Doha rumours. Also is it true they

are building a men’s only mall in the industrial area?Anonymous, Doha, via email

This is a sensitive subject, but one that we agree could do with some attention from a publication like TheEDGE. As far as we know, yes there is a men’s only mall being built for construction workers and other manual labourers near Salwa Industrial. We will find out more and let you know the full story. – Miles Masterson, Managing Editor

If you have any feedback for TheEDGE please email us at [email protected]

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PHOTO OF THE MONTH

TheEDGE MAGAZINE

ThE EmIR’S VISIT TO INdIaQatar’s Emir, His Highness Sheikh Hamad bin Khalifa Al Thani inspects a guard of honour during his ceremonial reception at India’s presidential palace, Rashtrapati Bhavan, in New Delhi recently. Sheikh Hamad conducted a three-day state visit to India in early April. (Reuters/ArabianEye images).

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With the construction boom taking place in Qatar, the need for measures to maintain the new-found real estate wealth has become more imperative, said minister of justice, HE Hassan bin Abdullah Al Ghanim. He was speaking at the Qatar Islamic Bank’s (QIB) international conference on real estate valuation recently.

“One of the effective ways to maintain the real estate fund is to have realistic methods of valuing real estate, methods that lead to valuations that are neither excessive nor negligent,” Al Ghanim said. According to the justice minister, Qatar has realised the importance of this, and why it is necessary to base valuations on appropriate scientific and legal standards. He said accurate valuations have a direct impact on the warranty real estate of banks and insurance companies and, as a result, the government is required to set rules, standards, and conditions for the practice of real estate valuation profession, to regulate and improve the performance of the profession, and improve the expertise and knowledge of the people working within the industry.

“It is necessary to regulate the profession of real estate valuation through legislation and administrative regulations that should protect the profession and set the foundations that will fit with the aspirations of specialists, experts and go on to verify the needs of the community, in sympathy with all other professions in society,” Al Ghanim added.

Chairman of QIB, HE Sheikh Jassim bin Hamad bin Jassim bin Jaber Al Thani, stressed the importance of real estate valuation, saying it emanates from the fact that

Silatech has recently announced a partnership with the German Agency for International Cooperation (GIZ) and Sanabel (the microfinance network for Arab countries) to provide savings initiatives for low-income youth in the Middle East and North Africa (MENA) region.

The project will allow young people aged 16 to 30 to build their financial assets through the opening of youth-specific microsavings accounts. Silatech, a Qatar-based social initiative, is offering financial and technical assistance in cooperation with GIZ, while Sanabel is serving as the knowledge dissemination and policy partner. In addition to

new youth savings accounts offered through a network of partner financial institutions, the initiative will provide training on ‘financial literacy’ for young people, as well as an outreach campaign, in partnership with its partner financial institutions, to raise the awareness among young people of the importance of saving money. The two-year programme is expected to facilitate access to microsavings accounts and financial literacy training for at least 50,000 disadvantaged young people in its three countries of operation—Egypt, Morocco and Yemen. It is expected that an estimated 150,000 youth will be influenced through

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QATAR CAllS fOR lEGAl fRAmEWORk Of rEAL EStAtE vALuAtION

SIlaTECh, GIZ aNd SaNaBEl TO laUNCh REGIONal yOUTh SaVINGS INITIaTIVE TaRGETING 150,000 yOUTh

Minister of justice, HE Hassan bin Abdullah Al Ghanim (second right) with chairman of QIB, Sheikh Jassim bin Hamad bin Jassim bin Jaber Al Thani at QIB’s international conference in real estate valuation.

Elvira Ganter, (left) head of Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and Dr. Tarik Yousef, chief executive officer, Silatech during the partnership announcement held recently.

real estate investments have become one of the key building blocks of any economy, where the interests of investors both individual and institutional can be at stake. “It is therefore of the utmost importance to ensure there is a precise and transparent real estate valuation,” he added.

outreach campaigns linked to microsavings and financial literacy training offered by partner financial institutions and other youth serving organisations.

Qatar is the safest investment destination in the Middle East and North Africa (MENA) region and is the 20th safest sovereign in the world in a survey of economists’ perceptions of country risk, a new report has said. According to the latest results of Euromoney’s longstanding survey of country risk, Qatar, which has been the highest-rated MENA sovereign in the poll since September 2009, is now considered to be one of the safest investment destinations in the world, having climbed one place in 2011 to 20th globally, with a score of 73 out of 100. The country is now rated ahead of Belgium, the Czech Republic, Japan and Saudi Arabia in the ratings, thanks to strong scores for both economic and political risk. Qatar is also considered to have the most stable banking sector in the region, the lowest corruption, and the most stable government of any MENA country.

The Euromoney’s report has put Kuwait second in the MENA region, which ranks countries according to economists’ perceptions of economic, political and structural risk. Kuwait was placed at 28th, while Oman, Saudi Arabia and the United Arab Emirates were among the top 50 nations regarded as safest sovereign. Kuwait performed well in the survey, rising four places in the past 12 months. It ranked ahead of Italy and Spain but behind South Korea, Japan and France in the global survey.

Israel, Oman, Saudi Arabia and Tunisia also performed well in the view of economists, with each country rising in the rankings since April 2011. But Syria, Egypt, Iran, Yemen, Jordan, Libya and Bahrain all became more risky in the past twelve months. Syria and Yemen are considered the region’s riskiest countries by participating economists.

More than 400 economists and country-risk specialists from a range of financial institutions take part in Euromoney’s country risk survey, evaluating the risks faced by international investors in more than 180 markets The experts scored each country out of 10 across 15 variables of sovereign risk, including metrics such as bank stability, government finances, hard and soft infrastructure and institutional risk. Each variable was then weighted to give an overall score out of 100 (100 = no risk; 0= maximum risk). The scores were then averaged to provide a country risk score for each sovereign.

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QATAR TAKES 28TH RANK IN WORLD ICT RANKING

Qatar has been ranked 28th in the Global ICT ranking, as the nation embraces ICT uptake and has started to gain from the associated benefits, a new report has said.

“In the Middle East, Bahrain, Qatar and the United Arab Emirates are in the lead and have recognised the importance of ICT to diversify their economy,” a report by World Economic Forum (WEF) has said.

The WEF report examined the success of 142 countries in using information and communications technology to boost economic competitiveness. Countries in the Gulf Cooperation Council have started reaping the benefits associated with ICT, but countries in North Africa and the Levantine nations still suffer from important weaknesses

that hinder their capacity to fully leverage the use of ICT to increase competitiveness and accelerate the positive social impacts that are associated with technology.

The report said that only Bahrain was ahead of Qatar, coming in at 27th, while the United Arab Emirates (UAE) stood at 30th in the ranking.

At the top of the list are advanced economies of Sweden, Singapore, Finland, Denmark, Switzerland, Netherlands, Norway, United States, Canada and Britain.

According to the report, overall, Europe remains at the forefront of efforts to leverage ICT to transform its economy and society.

BLOOMBERG DOHA FINANCIAL SUMMIT ENDS SUCCESSFULLYThe first Bloomberg Doha Conference, organised by Bloomberg LINK in partnership with the Qatar Financial Centre Authority (QFC Authority), recently came to a successful close. The two-day conference was held at the Ritz Carlton, It attracted more than 350 delegates from Asia, Europe, the United States and the Middle East.

The aim of the conference was to enable professionals in the asset management industry to share views on the issues facing the industry in the Gulf Cooperation Council (GCC) region and globally, and to deepen understanding of the role of Qatar, one of the world’s fastest growing economies, as an international financial centre, especially for fund management. Among the delegates were asset managers, chief investment officers, investors, investment bankers, private bankers, representatives of government-owned investment funds and prominent Qatari and regional decision makers.

QATAR RAIL FLOATS METRO FIRST PHASE TENDERSQatar Railways Development Company (QRDC) chief executive officer (CEO), Saad al Mohannadi recently invited tenders to carry out urgent works for the first phase. of the Qatar Metro.

“The assessment process took six months, as we wanted to ensure that the bids are competitive and the firms have the capacity to carry out quality work within the given deadline,” Mohannadi said. He said about 30 firms have been shortlisted from the 60 registered firms that will be invited for the bidding process.

“We hope to finalise the contracts by year end, with the start of major works in 2013,” the QRDC CEO said.

NEwS IN BrIEF

by ASIF IQBAL

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QATAR SAFEST INVESTMENT DESTINATION IN MENA REGION: EUROMONEY

“This United Nations observers thing is a big joke…shelling stops and tanks are hidden when they visit somewhere, and when they leave, shelling resumes.”

Mohammed Saeed, an activist based in the Damascus suburb of Douma, reflects a widespread lack of faith among many Syrians in the United Nations cease-fire plan, which calls for ending violence, withdrawing troops and heavy weapons from populated areas, releasing detainees and allowing peaceful demonstrations.

“We in Qatar have not been affected by the crisis due to the government’s foresight and wise leadership, as well as our wealth and the financial institutions, which are based on an Islamic banking system.”

Qatar’s minister of culture, arts and heritage HE Dr. Hamad bin Abdulaziz Al Kuwari said recently at UNCTAD XIII.

2012EVENTS CALENDAr

TheEDGE

6 – 8International Trade Exhibition for Partners and Franchises

7 – 82nd Annual Mechanical, Engineering and Plumbing Summit Awards

7 – 8Infrastructure and Property Development MEA Summit

7 – 9Desert Green

10 – 13Made in Italy

22 – 24International Exhibition of Toys

14 – 16SPE International Production and Operations Conference and Exhibition (Oil and Gas)

23 – 25Cityscape (See Business Insight Interview on Page 70)

28 – 31Qatar Transport

may DOhA, QAtAr

NEwS IN QUOTES“I am pleased to point out that Doha has become an important venue for conferences that seek to promote development at the global level, and this reflects the consistent interest of

Qatar in development issues worldwide.”

HH The Emir Sheikh Hamad bin Khalifa Al Thani at the Qatar National Convention Centre’s inauguration of the 13th session of the United Nations Conference on Trade and Development (UNCTAD XIII). In attendance were a number of heads of state and government, United Nations officials and senior officials from UNCTAD member states.

“ We have a commitment to the Arab countries in transition…a commitment that by our annual meeting in Tokyo (in October 2012), we will have several programmes in place to help them navigate the transition…it will not be enough, it will require other supporters, donors, partners, to help financially and in trade opening as well.”

Christine Lagarde, managing director of the International Monetary Fund (IMF), recently said the IMF had several loan programmes for Arab countries in the works, pointing to the Arab Spring countries as likely recipients.

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For a full and comprehensive calendar of events in Qatar please visit www.theedge.me

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TheeDGe Magazine

This month TheEDGE Magazine, Qatar’s Catalyst for Business, is proud to announce the launch of our comprehensive website www.theedge.me

Featuring current and archive feature and news content, breaking news and online exclusives, www.theedge.me will extend the invaluable service TheEDGE print magazine provides Qatar’s bustling multi-sector business community, and is set to become the one-stop online portal for business-related content and information in Qatar.The vast website, populated with archive and current material from the magazine, includes interviews with top Qatari businessmen and sector experts, in-depth, world-class coverage of the latest business and socio-economic topics from Qatar, the Middle East and the world; as well as opinion and commentary columns, practical advice on human resources and management challenges, events and much more.Like the print version, business sectors and segments covered on our website will include Finance and Economics, Insurance and Banking, Trade and Industry, Hydrocarbons, Water and Energy, Construction and Real Estate, Innovation and Research, IT and Communications, SMEs and Entrepreneurism, Business Management and Human Resources, Transport and Aviation, MICE and Tourism, Retail and Commerce, Legal Insight, plus the business aspects of Marketing, Media Healthcare, Sport Business, Education, Food Security, Sociopolitics etcetera.In addition, www.theedge.me will feature online exclusive interviews, articles and event coverage as well as multimedia links to TheEDGE Magazine’s digital and social media portals as well as other unique features.The website will also offer businesses the perfect digital marketing solution means with which to align their brands with and gain exposure in the rapidly expanding Qatari business landscape.www.theedge.me is Qatar’s new digital business sensation.

For more information contact [email protected]

Twitter: @TheEDGEQatar Facebook: www.facebook/qatartheedge LinkedIn: www.linkedin/theedgeqatar

QATAR’S CATALYST FOR BUSINESS

bReAking newS

Home profilesnews qatar finance infotecH smes energy management sectors lifestyle

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i remember being told years ago about the ‘paperless office’: how in the future everything would be electronically delivered, streamlined, and environmentally friendly

wrapped in the bargain.Well, the future is here, but are we not

still waiting to see that? Admittedly I work in a newsroom, which is inherently about ‘the printed word’, but there is an enormous amount of paper used – something I can only imagine is replicated in offi ces right across Doha.

Recycling all that paper waste is something that urgently needs attention as the population here continues to grow. Of course it is not just paper. Glass, plastics and even organic waste – it is all being produced and consumed at an alarming rate, and then being simply dumped in a wheelie-bin or rubbish skip along with everything else.

Recycling is not part of the culture here, and perhaps that is a product of – as in so many cases – Qatar being a young, fast-developing country. But maybe it is time for a real push to get people into the habit of not simply throwing away.

An effort has defi nitely been made in public places. Look at any of Doha’s major parks and you will fi nd separate bins for plastics and paper, which is exactly the right start.

On a policy level, the Qatar National Development Strategy 2011-16 wants a solid waste management plan established by 2016, with recycling to form a major part of that. The aim, and it is ambitious, is to be recycling 38 percent of Qatar’s total solid waste by 2016. Right now, it is only at eight percent.

A big focus will be the construction industry, where an astonishing 20,000 tons of waste is created every day. A lot of that is so-called demolition waste as places like Musheireb are bulldozed to make way for new developments. The Ministry of Environment has made this a big part of its new standards and specifi cations for recycling, claiming up to 50 percent of solid waste generated in Qatar can be effectively recycled.

But as ever it is about words, not actions. Already some enterprising businesses in Qatar have taken the initiative, and credit must go to them.

Like the Al Suwaidi Paper Factory, which for years has been the only option for paper recycling. A resourceful business based in the Industrial Area, Al Suwaidi collects paper waste from some of Doha’s most high-profi le workplaces – places such as the British Embassy, Qatar University and the Qatar Financial Centre (QFC) – and recycles it themselves for use in heavy packing paper and boxes. It is not an offi cial programme and it is only a small portion of what could be achieved, but at least they are doing something proactive and visible.

Credit too goes to the QFC, which built its own on-site recycling collection unit. These types of investments are good for business here. You could look at it as simply window-dressing, or being seen to be doing the right thing – but given the low-penetration of such programmes in Qatar right now, it literally does make a difference.

Also, it starts putting the right culture in place for the next generation of locals and expats who will enter the work place.

But there is personal responsibility too, and this is where the government would do well to explore a proper home recycling programme. It is commonplace now in major cities for homes to be provided with separate bins for separate waste products, and Qatar needs that, too.

According to the United Nations Environment Programme, Qatar’s annual waste generation rate is 430 kilograms per person; one of the highest per-capita rates in the world. And that should not come as a surprise – just think about how many plastic bottles of drinking water you go through in a week at home.

The vision is clearly in place for Qatar to start reusing more of what it consumes, but the success of such a vision is almost entirely down to the people, and their desire to recycle. That will be the real challenge.

Kamahl Santamaria is a Doha-based news anchor with Al Jazeera English and host of the channel’s business and economics programme Counting the Cost.

AWARE?

QATARImPACT

Pollution, recycling, emissions – they are all environmental buzzwords for our conscience. Kamahl Santamaria considers if those words are really being turned into action in Qatar.

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22 TheEDGE

ENERGY & RESEARCHjaPaN TO jORdaN: hOw GlOBal EvENtS ArE DEFINING DOhA’S BuDGEt

Qatari–Japanese relations were boosted following the Fukushima crisis when Doha upped LNG exports to the Far East. The global price rise that followed is yet to retract. So with Japan looking to restart its nuclear power industry, LNG prices should begin to fall – or so one would expect. Jamie Stewart reports on how global events in both Japan – and closer to home in Jordan – are defining Doha’s budget.

Friday the 13th , April 2012. The government of Japan grants final approval to utility Kansai Electric to restart the number three and number four nuclear reactors at the Ohi atomic power plant. The move renews hopes that more reactors will be ramped up to generate power, aiding the nation’s

economic recovery. It also cuts Japan’s demand for liquefied natural gas (LNG) – the most important export commodity in Qatar – by some two million tonnes per annum (mtpa).

Japan’s energy landscape changed forever in a single heartbeat at 2:46pm on Friday 11 March, when a magnitude 8.9 earthquake struck 70 kilometres east of the Oshika peninsula.

The tsunami that resulted triggered catastrophe at the country’s Fukushima Daiichi nuclear power plant, resulting in the destruction of four reactors after emergency generators were flooded, obstructing automatic cooling systems.

In the days that followed, the full extent of the crisis began to dawn. Japan had for years been heavily reliant on its nuclear reactors for power generation. Unless it was again able to meet demand for electricity, the gargantuan effort required to recover from the devastation would be put on hold.

Japan began to ramp up power production from its gas-fired power

Reactor three at the Mihama nuclear power plant in Japan. Only one of Japan’s 54 reactors was generating electricity in mid-April, causing a huge spike in the country’s demand for Qatari liquefied natural gas. (Getty Images)

begins to retreat – but surprisingly, this has not been the case, with other competing drivers at work.

The market is expecting a three-month gap before initial nuclear operations begin to ramp back up, which opens the door to the prospect of a summer – the season when Japanese power demand reaches its annual peak – without nuclear power.

In addition, the three-month window closes at the time when demand for LNG from South America, which peaks during the southern hemisphere winter, is expected to reach its height. This has supported forward prices for LNG later this year, ICIS Energy says, which will benefit Qatar’s export industry over the short- to medium-term.

ClOSER TO hOmEBeyond this summer, however, major LNG exporters such as Qatar

must work to secure their markets. And in this instance, Qatar is looking much closer to home than the Far East.

According to the Jordanian state news agency Petra, on 11 April the Qatari ambassador to Jordan, Zayed bin Saeed Al Khayareen, held talks with Jordanian energy minister, Qutaibah Abu Qura, focused on “the possibility of providing Jordan with Qatari liquid gas” via shipped cargoes.

The discussions also delved into the Jordanian government’s efforts to achieve energy security, Petra said. Only last month TheEDGE reported on Amman and Doha’s involvement in Jordan’s push to develop a nuclear power industry.

The issue of Jordanian energy security has attained a higher profile in recent months due to the country’s reliance on imports of Egyptian gas, which account for around 80 percent of Jordan’s electricity generation needs.

Political instability in Egypt has led to a series of explosions targeted at the country’s gas export pipelines, including a link to Jordan that runs via Israel. The acts of sabotage have limited Egypt’s ability to honour an agreement to supply Jordan with gas that has been in place since 2001.

Qatar, with its immense export capacity, is in a position to offer volumes of its gas to Jordan, in a bid to cut Amman’s reliance on a dangerously unstable Egypt, while in the process securing Qatar’s own export markets for the months ahead. The LNG market is nothing if not global.

ENERGY & RESEARCH

TheEDGE24

Egypt’s ability to export natural gas to Jordan has been rocked by a series of explosions, such as this one pictured on 5 March, which has opened the door to negotiations between Jordan and Qatar. (Corbis Images)

According to the Federation of Electricity Power Companies of Japan, the country’s utilities imported a monthly record of 5.53 million tonnes of lnG in march.plants, as well as from its oil-fired facilities, while some global oil and gas suppliers, including Qatar, upped production and sent fuel-laden tankers to the Far East. At the same time, global energy markets reacted, forcing oil and gas prices substantially higher.

By mid-April of this year, only one nuclear reactor in Japan was in service, the remaining 49 – not including the four that were lost at Fukushima – having been taken off line for “stress tests”, a means of appeasing a huge rise in anti-nuclear sentiment among the Japanese public.

COmPETING dRIVERSPlugging the gap left by the loss of 54 nuclear reactors has been an

expensive task for Japan. According to the Federation of Electricity Power Companies of Japan, the country’s utilities imported a monthly record of 5.53 million tonnes of LNG in March.

For the fiscal year ending 31 March, LNG imports rose by around 20 percent year on year, while crude oil imports more than doubled. Of the additional LNG imports, the vast majority came from either Qatar or Malaysia.

According to analysis firm ICIS Energy, the spot price of LNG to be delivered into the Japanese market stood at US$16.30 (QR59.33)/MMBtu (one million British thermal units). The price for delivery into Europe ranged from US$9.10–10.67/MMBtu, while in South America the price was US$15.64/MMBtu (QR56.93).

Taking the current spot price for Japan as a base, the country paid out US$4.7 million (QR17 million) in March alone for LNG imports.

Over the longer term, Japan is looking to alternative sources of power generation, including offshore wind, to cut its spiralling fuel import costs.

“For us, LNG has been a suitable fuel to plug the gap,” international committee leader at the Japan Wind Power Association, Yoshinori Ueda, says. “But we need to cut back on our import volumes.” Ueda put Japan’s annual import bill for oil and gas at JPY3 trillion (QR134 billion). By comparison, Qatar pulled in around QR328 billion from LNG exports in 2011, according to Samba Financial Group.

In the immediate future a forced return to nuclear power looks more likely if Japan is to cut imports of LNG. It would be expected that the Japanese government’s move to restart its nuclear reactor fleet would lead to a fall in global LNG prices as demand in the Pacific basin

SLI 60 Ad _ Edge Magazine_Final NEW.pdf 1 3/27/12 4:32 PM

ENERGY & RESEARCH

TheEDGE26

In mid-April, energy giant RasGas inducted a new batch of 56 young Qataris, who had successfully completed training as field operators and field technicians.

Managing director Hamad Rashid Al Mohannadi said the company was “dedicated to providing professional training and education schemes, as well as career opportunities in all departments for Qatari nationals”.

The sentiment is broadly in line with Qatar National Vision 2030, which placed a lot of weight behind “creating a capable and motivated workforce”, alongside promoting Qatarisation.

The company has also played an active role in targeting future professionals at a much younger age. At the beginning of the month it played host to students of Qatar Independent Technical School at the Qatar National Career Fair 2012.

The visit was aimed at educating students “about the work environment in the LNG sector in particular”, the company said.

hydROCaRBONS – thE NEXt GENErAtIONJamie Stewart writes of the importance of Doha’s long-term diversification plan to train and recruit a workforce to maintain Qatar as a major oil and gas player.

Institutions such as Education City will play a vital role if Qatar is to retain its share of the global hydrocarbon export market. (Corbis Images)

Although Qatar is a major oil and gas player, we still need to import some of the best practices.” Those

are the words of Yousef Murad Al Jaber, one of three Qatar Petroleum employees to recently complete an eight-month stint working overseas with European energy utility, Centrica.

“It was a very powerful experience to be able to apply the knowledge from our culture to theirs, since we have our own strengths,” added Al Jaber, a 2007 chemical engineering graduate at Texas A&M University, Doha.

The words underline a vital – and sometimes overlooked – truth in Qatar’s hydrocarbon sector: Doha is a world leader, and world leaders do not stay world leaders unless they can train and recruit a workforce to match.

Qatar is the world’s largest exporter of liquefied natural gas (LNG), and its long-term economic diversification plan – so vital to the development of the nation – can only be funded if Doha is able to maintain a dynamic and hugely profitable hydrocarbon export industry.

Yet, as Al Jaber attests, despite its immense LNG exports, Doha has to import best practices, and to an extent, the best people.

As such the state plays a direct role in protecting its future prosperity through training. The Qatar Foundation (QF) has a wide mandate to support Qatar “on its journey from carbon economy to knowledge economy” – a journey that begins with energy. The QF’s work to prepare students to maintain Doha’s leading hydrocarbon role is conducted at the Qatar Science and Technology Park, Education City.

QaTaRISaTIONThis public, government-led push filters down directly into the

operations of the companies owned by the state.

“

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According to the International Monetary Fund (IMF) India’s gross domestic product per capita in 2011 was US$3703 (QR13,515), marking a low-middle income economy. India is also a member of BRICS as of this year, which is an international political organisation

of emerging economies. It is the tenth largest importer in the world and the nineteenth

largest exporter. The fiscal year for 2011/12 economic growth rate is projected at approximately seven percent.

As of 2009, India is the fourth largest producer of electricity and oil products and the fourth largest importer of coal and crude oil in the world.

The bilateral links between India and Qatar go far beyond the oil discovery of the late 1930s. Before the 1960s, the official currency of Qatar was the Indian rupee and both nations traded during the golden pearl diving era of the Arabian Peninsula. Qatar’s main exports to the west coast of India at the time were mainly pearls and dates.

Today, India’s multi-dimensional bond with Qatar includes cooperation in trade and the economic fields, in addition to manpower and energy sectors. TheEDGE spoke with the Indian ambassador to Qatar, Deepa Gopalan Wadhawa about the close relationship between the two nations.

Bilateral trade currently exceeds US$5 billion (QR18.2 billion) with Qatari exports to India amounting close to US$4.1 billion (QR14.9 billion). These include petrochemicals, liquefied natural gas (LNG), crude oil, fertiliser, sulphur, etcetera, while Indian imports to Qatar include accessories, manmade yarn, fabrics, made-ups, cotton yarn, transport equipment, machinery, manufacture of metals, minerals, etcetera.

“India is one of the largest markets to purchase LNG with a long-term agreement of 7.5 million tons annually and last year India imported five million tons of oil,” confirmed Wadhawa.

In 2009 both countries signed a memorandum of understanding in which Qatar agreed to invest US$5 billion (QR18.5 billion) in India, including infrastructure, fertiliser, hospitality, energy and real estate, while India is keen on setting up a petrochemical and fertiliser plant in Qatar with full buyback.

HH Sheikh Hamad bin Khalifa Al Thani, the Emir of Qatar, paid his third official visit to India last month. During the three-day visit, top officials representing both countries signed six agreements to promote economic ties and cooperation in various fields including education and tourism.

According to a recent article in The Peninsula newspaper, the new agreement seeks to promote investment and cooperation between the two ministries of oil and gas and through affiliated companies such as ONGC, Indian Oil, gas major GAIL, Qatar Petroleum and Qatargas. The first official visit of The Emir to India was in 1999, and both counries signed agreements for several joint initiatives, which led to a mutually beneficial situation and enhanced their presence in other regions. Six years later in 2005, during The Emir’s second visit, he reaffirmed Qatar’s support for India’s candidacy for permanent membership of the United Nations Security Council.

In 2006, HH Sheikha Moza bint Nasser Al Missned visited India and three further agreements were signed in the fields of educational exchanges, cultural contact and tourism promotion.

In 2008, the prime minister of India, Dr. Manmohan Singh paid his first official visit to Qatar and the two countries signed an agreement in the field of Defence Cooperation parallel to Cooperation in Security and Law Enforcement Matters. During Singh’s visit, the economic and commercial engagement was reviewed in detail. Qatar also highlighted its interest in exploring investment opportunities in India.

Qatar’s ties with India go beyond the discovery of oil. Erika Widén writes about the development of their relationship since the era when the Indian rupee was the official currency in Doha back in the british colonial period.

INDIANIDEAL

COUNTRY fOCUS

INDIA BY THE NUMBERS

Population: more than 1.2 billion

GDP (PPP) per capita: US$3,693 (QR13,442)

GDP (nominal) per capita: US$1,388 (QR5,052)

Independence from the United kingdom: 1947

Government: federal parliamentary constitutional republic

Currency: India rupee

Official language: Hindi and English

Wadhawa also mentioned to TheEDGE that India is one of the leading countries in the world in the information technology (IT) industry and IT companies have recently started entering the Qatari market.

There are a diverse number of active Indian companies in Qatar including L&T, Punj Lloyd, Voltas, and Simplex Construction in the engineering procurement construction sector. The value of contracts of these companies is at about US$3 billion (QR10 billion). Also, the State Bank of India and ICICI Bank have branches at the Qatar Financial Centre.

Due to the large Indian community in Qatar (Wadhawa believes it is as large as 500,000) and the historically strong links between both countries, it is evident that both are keen to strengthen their current ties further. There are a large number of Indian companies

likely to join the local business landscape due to Qatar’s immense infrastructure plans in preparation not only for the upcoming World Cup 2022, but also for the National Vision 2030.

Despite a reduction in visas being issued for Indian labourers in particular, the size of the Indian workforce in Doha is expected to grow as Qatar’s economy accelerates.

The Indian community has long been dominant throughout the Gulf Cooperation Council (GCC) and there are approximately six million Indians working in the GCC, predominantly in Saudi Arabia, Kuwait, Oman and the United Arab Emirates.

In comparison to other Arab states, the number of Indian professionals working in Doha constitutes a minor but significant component. It is hoped the mutual development of friendship and understanding, strong cultural and economic ties will long continue.

Before the 1960s, the official currency of Qatar was the Indian rupee and both nations traded during the golden pearl diving era of the Arabian Peninsula.

COUNTRY fOCUS

TheEDGE 29

OPINION

A survey conducted recently in Qatar released interesting results about the impact of various spoken languages communicating within the workplace. Ryan Peden explains further the challenges and barriers of diverse mother tongues affecting employee efficiency and business results.

Over the last couple of months here at Educate Learning Center, we have been collecting survey responses in Qatar as part of our study

of English in the workplace and whether or not language differences are impacting business results. This article addresses those results with a brief overview of some of the main challenges created by language barriers in the workplace, and five ways you can ensure that your language training provider is giving you the most effective training possible for your money.

It seems that across the survey responses there are approximately six to10 languages spoken in the work place on average. It is interesting to note the diversity of these languages; Hindi, English, Tagalog and Arabic are all common, as well as other

FIvE WAyS tO ENSurE yOur WOrkPLACE IS GEttING

languages from South and Southeast Asia and from across Europe. It is evident then, that there is great diversity in languages spoken in the workplace in Qatar. This raises the question, what challenges does this diversity create? And how can we solve these challenges?

ThE ChallENGESIt seems that the primary challenge

that most respondents signified was communication with employees within the workplace. Many respondents identified that the diversity in languages in their workplaces leads to some level of communication problems, with over two-thirds of workplaces saying they face these language challenges sometimes, often or all the time. Eighty- two percent of those who indicated that

their workplace did indeed face challenges due to language barriers also indicated that this actually impacted the efficiency of employees and reduced overall results. Unlike many other nations, Qatar and other Gulf Cooperation Council (GCC) states need to manage a much more diverse workforce, making addressing language barriers an important business issue.

Language challenges are not only an internal company issue, as a staggering 40 percent of survey respondents indicated that language challenges impacted their sales and marketing results. In fact, many respondents identified this to be the number one area of their business, needing English language expertise. If companies were to address these challenges they would in fact be able to increase their revenues and expand profitability. This is especially true as the Qatar economy continues to grow, and as Qatar increasingly becomes a leading destination for global business, cultural and sporting events, with English skills a necessity as the common language of business in the global marketplace.

It would appear that the three highest areas of need for language training based on survey responses are customer service, sales and marketing, and human resources. Most of the problems came down to communicating in an effective and clear manner with customers. However, there were also many documented problems internally, especially communication issues between human resources (HR) and staff.

The conclusion that can be drawn from the research is that language understanding is indeed a challenge in a significant number of markets in Qatar and that sales and marketing, customer service and HR are the areas of highest concern.

hOw EFFECTIVE aRE CURRENT laNGUaGE PROVIdERS

Typically, most companies who wish to address communication challenges in the workplace, and do not have the capacity to employ their own language training staff, look to employ the services of an English language training organisation. This solution can be effective if the trainers are able to deliver

thE BESt laNGUaGE

TRaINING

conversation over the phone with a native English speaker to book a meeting. Notice here how the goal is measurable and you are describing the exact outcome you want from the training. This will give you a clear indication of whether or not the trainer has delivered on the promised training.

2. Have the provider write an exact curriculum that addresses these goals, review the curriculum before the lessons begin to make sure it has been developed to address your needs. Checking up with your provider never hurts and do not be afraid to be picky; if you are unhappy with

haS POOR ENGlISh IN ThE wORKPlaCE EVER ImPaCTEd SalES OR maRKETING RESUlTS?

the service in a way that meets the exact needs of the organisation. Unfortunately, a lot of English training organisations do not deliver training that is specifically tailored to the needs of the organisation. Rather, many English training organisations will look to create set curriculums, which they will offer as a standard product despite saying that they are able to tailor their products.

In the survey, those companies who currently use a language training provider rated their provider just over a five-out-of-10 on average, showing that many companies are currently investing in language training that is not effectively addressing the communication needs of their business. This may answer why, even though over two-thirds of survey respondents identify communication challenges in the workplace, only 21 percent actually invest in language training. With English language skills providing a common workplace language to facilitate both internal and external communication, while creating opportunities not only for the companies themselves, but also professional development and career advancement opportunities for employees, companies who wish to invest in language training need to figure out how to make this as effective as possible.

hOw CaN aN hR maNaGER maKE SURE ThaT yOUR laNGUaGE PROVIdER IS GIVING ThE BEST BaNG FOR yOUR BUCK?1. Go through your exact requirements at

the start and make sure your provider clearly understands them. A good tip here could be to set learning goals, tangible goals you want your students to achieve. For example, students will be able to have a clear and concise three minute

OPINION

TheEDGE 31

the curriculum, make this known and ask the trainer to make adjustments.

3. Have regular checkups with the students. Are your employees receiving what was promised them? A good way to do this could be to create a survey that measures satisfaction.

4. Make sure your provider does testing before and after the course to measure progress. This is particularly important if the progress of your learning goals will not be obvious from simple observation of the student. This will also help the trainers to better tailor their training as the pretest will give them a good indication of what level your employees have reached, allowing them to create a suitable curriculum.

5. Negotiate a deal with your provider. X payment will depend on certain goals being met as agreed upon in your contract as measured by X test. This way your training provider cannot get away with providing training that is substandard.

Ryan Peden is CEO of Educate Learning Center and Chairman of SELTI International.

A staggering 40 percent of businesses in Qatar indicated that language challenges impacted their sales and marketing results.

NO28.17%

NOT SURE28.17%

yES39.44%

MArket WAtch • BAlAnce Sheet • SpeciAl repOrt • perSOnAl FinAnce • ecOnOMic BArOMeter

FINANCE &ECONOMICS

alSO IN ThIS SECTION:• market watch: Dheeraj Shahdadpuri writes how the seeming stability in the euro area was

short-lived, as Spain hovers close to another recession. (P.34)• Balance Sheet: Kanchan Ghoshal explains how talent planning and acquisition has an

impact on organisational performance. (P.36)• Special Report: Thomas Bacon looks at how Qatar’s banks are turning to the international

bond market. (P.38)• Personal Finance: Adrian Bliss gives advice on how diversifying your investments can help

achieve capital preservation. (P.40)

Brought to you by:

QaTaR’S 2012 BUdGET (P.42) Usually announced on April 1, Qatar’s budget for the 2012

fiscal year is delayed until the end of May. Karim Nakhle looks at the unexpected push back of the much-waited

budget announcement.

PAIN IN SPAIN The current leg of stability witnessed in the euro area, as expected, is proving

to be short-lived. Lately, some turbulence has started to re-emerge in Spain, which recently failed to attract strong response to its newest bond auction; a sign that market participants are concerned about deteriorating economic conditions of the country. Spain is close to entering a second recession in three years after its real economic output contracted by 0.3 percent in the fourth quarter of 2011. A 0.5 percent drop drove this decline in domestic demand, although the contribution of external demand remained positive with growth of 0.3 percent (down 0.1 percent from the previous quarter). Government figures further reveal a weak state of the country’s Balance of Payment which was in deficit of EUR27.8 billion (QR130 billion) for the first ten months of last year. The condition of the domestic banking industry, which is trying to recover from the collapse of real estate activity, is also of a deep concern. According to the Bank of Spain, banks are facing EUR176 billion (QR827 billion) in troubled real estate assets, which is 52 percent of the total exposure to this sector. A further economic squeeze is projected, as government recently approved curtailing its budget by EUR27 billion (QR126 billion) with an aim of bringing the ballooning fiscal deficit down from the current 8.5 percent of gross domestic product to 5.3 percent and further to three percent of the real economic activity by next year. Government expects the economy to contract by around 1.7 percent in 2012, which would be mainly on account of the austerity measures that will impact investments in the country.

The task to rejuvenate economic prosperity remains tough for Spain, especially given the fact that domestic funding sources are limited, and borrowing money from international markets is getting costlier once again, as investors are demanding higher returns for perceived investment risk. As a result, the yield spread on a Spanish bond with a comparable German bond, considered safest in the 17 nations in the euro area, has increased to around 4.3 percent in recent times. However, some divergent views regarding the economic health of the country also exist, according to which, Spain is not another Greece in the making, at least until now, as total debt to gross domestic product ratio of the country stands at 68.5 percent (2011-end) as compared to the 160 percent of the latter. Although, the ratio is expected to rise to 79.8 percent (as per official estimates), government has so far indicated that it will not require bailout from its euro area member nations to stay afloat. But as the current situation stands, the Spanish economy will have to go through a painful process of rebalancing itself before any prosperity is restored.

The real gross domestic product (GDP) of the 17 nations in the euro area declined by 0.3 percent in the fourth quarter of 2011, following a marginal expansion of 0.1 percent in the previous quarter. This decline was mainly a result of a 0.5 percent contraction in regional private consumption whereas the gross fixed capital formation decelerated by 0.5 percent during the quarter. As a result, investment in the region registered its third consecutive quarter of contraction. The biggest regional economy, Germany, registered a decline of 0.2 percent, although on a year-on-year basis, the economy expanded by two percent. On the other hand, the Italian economy, which together with Spain is fighting hard to combat the debt crisis and avoid availing a bailout, entered into a technical recession during the last quarter of 2011 when its GDP declined by 0.7 percent following a 0.2 percent decline in the previous quarter. The contraction is mainly driven by the increasing hold of the austerity measures worth EUR54 billion (QR196 billion) aimed at achieving an ambitious target of balancing the government finances by next year. Despite the fact that regional economic activity has weakened during the second half of last year and

is projected to remain sluggish in the short term, expectations are ripe that a revival can be expected during the latter part of the year. This obviously remains dependent on the fact that euro area policymakers are able to avoid any disorderly sovereign defaults and each member nation continues to make progress in consolidating its respective fiscal position, which is urgently required to strengthen the investors’ confidence. To support regional liquidity, the European Central Bank can be expected to keep its benchmark interest rate low, which currently stands at one percent after two reductions of 25 bps each were made late last year.

EURO REGIONAL ECONOMY WEAKENS, BUT COULD REVIVE LATER DURING 2012

mARkETWATCH

GLOBAL MARKET WATCH By DhEERAJ ShAhDADPuRI

EURO WOES:

are counterbalanced by the banks’ high dependence on government-related business, which creates concentrations on both sides of the balance sheet. In addition, the banks’ dependence on the domestic economy, which is undiversified, remains heavily reliant on the oil and gas sector, while the banks’ aggressive loan growth and high construction and real estate sector exposures continue to pose credit risks. Uncertainties regarding regional political developments also pose a tail risk to the benign operating environment.

By ASIF IQBAL

Qatar’s banking system outlook remains stable, Moody’s Investors Service has said. The outlook “reflects Qatar’s strong macro environment and high public spending levels that will continue to sustain growth and bank lending activity over the 12-18 month outlook period,” the ratings agency’s said in its latest Banking System Outlook. The outlook pencils in the banks’ limited asset-quality pressures, healthy capitalisation levels, stable deposit base, significant liquidity buffers and strong earnings potential. The revenue of the banks is likely to rise with credit growth hovering between 20 percent and 25 percent during 2012 on strength of a projected six percent economic growth. High global oil prices, strong liquefied natural gas export volumes and accelerated public spending will also stimulate the non-oil economy and help to ensure the economic growth.Non-performing loan levels will likely remain relatively stable at around two percent of gross loans, supported by Qatar’s strong macro environment and improvements in the credit quality of banks’ consumer portfolios.Following three rounds of pre-emptive capital injections by the Qatari government into the seven listed domestic banks between 2009 and 2011, culminating in a Tier one ratio of 20 percent as of December 2011, the sector’s solid capital buffers provide high loss-absorption capacity, in Moody’s view.The rating agency says that core liquid assets – estimated at 34 percent of total assets in December 2011 – demonstrate that liquidity buffers are sound within the system, which remains

TheEDGE 35

mARkETWATCH

predominantly deposit-funded.Moody’s notes that this will continue to benefit from the strong ties with the Qatari government, which contributed around 23 percent of sector deposits as of December 2011, forming a stable (though concentrated) funding source. It points out that the banks have increased their dependence on wholesale funding – primarily short-term foreign interbank balances – which account for approximately 33 percent of total funding as of December 2011. This degree of exposure leaves the banks vulnerable to shifts in market conditions and investor sentiment. It points out that the return on average assets stood at 2.7 percent in 2011, one of the highest ratios among regional peers. Qatari banks’ interest-rate margins will likely decline in 2012 due to the increased funding costs and the introduction of interest-rate caps on their retail portfolios. However, Moody’s expects the system’s overall profitability to remain at comfortable levels, supported by higher lending volumes, low provisioning requirements and banks’ low cost bases. However, Moody’s notes that the supportive outlook factors

QATAR’S

Qatar construction at night in its main business district, Dafna, a location where the major banks of Doha are relocating.

QATARI BANKS’ OUTLOOK STABLE, SAYS MOODY’S

BAlANCE SHEET

The majority of Qatar’s workforce depends mostly on expatriates. Kanchan Ghoshal explains how talent planning and acquisition impacts an organisation’s performance and explains how to nominate the right candidate for a certain position.

case Study: A fast growing organisation in the financial services sector in the Gulf Cooperation Council (GCC) has been assigned a target to

bring in US$500 million (QR 1.8 billion) worth of assets under its management at the end of year one. The organisation searches for an investment director who is expected to come on board and lead this process; when successfully hired, this investment director fails to meet expectations and resigns from his job in three months out of frustration. Since much was planned around this investment director role, can the organisation, having lost six vital months already, manage to put its act together in the remaining six months? Besides costs already incurred, the hiring of a suitable replacement could take another three to four months. The reversal of some of the ‘not

hOW tALENt PLANNING AND ACQuISItION

IMPACtS OrGANISAtIONAL PERFORmaNCE

so good’ decisions taken by this investment director will be quite high as well.

The need being urgent, a search consultant provides a draft job description from its database, is paid a handsome retainer and manages to place a relative of one of the senior members of the management team of the same organisation in the job. The candidate is an accomplished individual who comes a well-known global organisation, that works on well-defined systems and processes and an established geographically dispersed client base, unlike this start up organisation. After taking up the job, the new investment director cannot tolerate the ambiguity of a start up situation. He is also ill equipped to set up his team and plan how they will work from almost-scratch – he has never done that before. The board of directors and chief executive officer (CEO) want to give him more time, however, being a

professional of integrity, he regrets his decision and quits. He himself is now left high and dry and has to begin searching for a job again.

Similar situations to the one above may occur with talent planning and acquisition recruitment decisions at any level of management. While in this case the incumbent left his job, in many other cases the sub-optimal employer/employee relationship continues for years, causing a drain on organisational resources.

TalENT maNaGEmENTIn an economy experiencing unprecedented

growth, a robust talent management framework can help organisations minimise situations like these above and help them leverage organisational talent to achieve higher levels of business performance.

Talent management focuses on managing human resources in an organisation from the time recruitment needs are planned to the process of attracting the right people, developing and retaining them to deliver on an organisation’s current and future business objectives.

ESTaBlIShING ThE NEEd FOR TalENTWorkforce planning is often seen as a

bottom-up process, which contributes to the

colleagues in the organisation to try and make the professional arrangement work.

• Lost business opportunities or slow down /damage in an organisational process that a wrong hire may become responsible for may also prove to be costly.

• The uncertainties created by bad hiring instances sometimes create negative perceptions which are detrimental to other employees in the organisation and future hires due to reasons such as stereotyping and pessimism.

• The challenge of revisiting existing talent planning and acquisition processes often relates to issues related to unwillingness to question decisions associated with the past legacy and sensitivities around individual accountabilities. One way to avoid that, as has been seen in many successful organisations including those in Qatar, would be to enhance the talent planning and acquisition process with a conscious top management endorsed decision to focus on the future and look at the past only for success stories and learning opportunities. This could help such process improvements gain quicker acceptance within organisations and contribute to future business success.

• With the right mindset in a growing group of professional business leaders in Qatar and support to assist them in the process, it is only a matter of time before gaps in talent planning and acquisition processes are overcome to positively impact the balance sheet.

Kanchan Ghoshal is director of People and Change, KPMG.

drawing up of organisational business plans and budgets. Active review of these numbers by a strategic group within the organisation is essential to ensure that the following get addressed appropriately:• Is the organisational strategic direction and

structure defined for the short, medium and long-term and are the workforce requirements mapped to this or will our new hires become redundant after a certain period? This can define the contracting option or outsourcing considerations. Very often alternative means of employment are ignored and full time employees are hired for time bound projects. Once these projects are complete, these employees become a cost burden due to absence of alternative opportunities to employ them.

• Have all staffing options been considered from the perspective of full time ‘utilisation of resources’, ‘specialisation versus generalisation’ and outsourcing options? Some engineers in process-based industries have confided that they feel utilised in their jobs only when shut down maintenance happens once a year for a few weeks.

• Have requirements been defined based on the above through suitable job descriptions – education and experience requirements – aligned to what the incumbent is expected to perform in the new organisation?

aCQUIRING ThE RIGhT TalENTExpatriates constitute a majority of the local

workforce. The interpretation of the quality of education and experience as represented in the curriculum vitae (CV) of a job applicant is complex. For example, universities offer various courses and many have commercial considerations for doing so. Differences emerging from the above are useful to note especially when comparing one candidate to another on the educational background parameter. Similarly prior experience assessment can be made more robust by including the following:• Name of the organisation worked for, which

business division, turnover and reputation. • Where the applicant fitted in the

organisation structure – organisations in Qatar have at times had to invest in developing strategic capabilities of

BAlANCE SHEET

TheEDGE 37

employees who in their prior roles were operationally and functionally focused (for example a training and development focus as opposed to general human resource management). Assessment along this parameter helps make an informed decision and can help make a decision on using further tools to assess candidate capability to take on new challenges. This also helps the incumbent employee better understand the role.

• Reference checks are useful – while organisations hiring in bulk in certain parts of the world outsource verification of educational certificates and experience backgrounds to third party agencies as a routine process for management level hires, a standard review of educational certificates and ‘from’ and ‘to’ dates in organisations listed under prior experience is a bare minimum. While certain organisations in the GCC region follow this process diligently, those faced with manifold growth ambitions within a limited time are always at risk of overlooking such processes, the following of which could have been prudent in the long run.

hOw IS ORGaNISaTIONal PERFORmaNCE aFFECTEd whEN ThESE STEPS aRE NOT FOllOwEd?• The monetary costs incurred in terms of

fees payable to a search firm/recruitment agency and expenses on travel, induction and settling down of the new employee are substantial when the talent acquired cannot be meaningfully and optimally utilised.

• What often does not get measured is the intangible costs – time spent by the HR and administrative functions in pursuing arrangements, time spent by superiors and

Workforce planning is often seen as a bottom-up process, which contributes to the drawing up of organisational business plans and budgets.

SPECIAl REPORT

bank was looking to offer up to US$750 million (QR2.7 billion) worth of debt in the third quarter, while other lenders are also believed to be looking at options to boost liquidity. Akber Khan, an asset management director at Al Rayan Investment, told Bloomberg in February that Qatar’s banks have a number of motives for issuing debt. “It is to further strengthen balance sheets in anticipation of increased borrowing requirements in the coming quarters,” he said.

Indeed, while QNB is eyeing higher borrowing as the infrastructure surge gains momentum, it is also filling its coffers with a mind to expand through acquisitions, having been linked to the sale of Turkey’s Denizbank, owned by troubled Franco-Belgian lender Dexia. The sale, however, is by no means a done deal, as according to media reports a gap exists between the amount QNB is prepared to pay and Dexia’s asking price, and other buyers are watching the situation closely. Even if the sale falls through, QNB is in the acquisitions market. To further diversify what is on offer on the Qatari bourse, the government listed 10 short-term treasury bills on the exchange in late December last year. The listing of these treasury bills has attracted the interest of banks, financial institutions and investors, creating a secondary market that will diversify the country’s investment instruments. The government also plans to follow this up with the additional listing of bonds and sukuks sometime in 2012. The appetite among investors for Qatari bank bonds is fairly easy to understand: in troubled times, money seeks a safe haven. With the fastest-growing economy in the world, and with sovereign reserves estimated at up to QR364 billion, Qatar presents some of the most attractive investment options anywhere.

Thomas Bacon is an analyst at Oxford Business Group.

Q atar’s banks are turning to the international bond market to bolster their cash reserves. With the government rolling out a series of big-budget infrastructure projects and the preparations for staging the World Cup 2022 underway, Qatari

banks are anticipating a sharp and profitable rise in loan demand, prompting a wave of bond issuances. The most recent entrant into the bond market was Doha Bank, which closed the books on a US$500 million (QR1.8 trillion) issue on March 11. The bond, which the bank says will be used for general funding purposes required to support its growth plans, proved popular with investors, being oversubscribed almost eight times. The senior bond, which has a five-year term, carries a coupon of 3.5 percent and has a spread of 262.5 basis points over mid-swaps. It is the first time that Doha Bank has tapped the bond market since 2006, though it had planned an offering in 2011, only to delay the issue after uncertainty prompted by Europe’s debt crisis.

According to Sheikh Abdul Rahman Bin Mohammad Bin Jabor Al Thani, the managing director of Doha Bank, investors in Europe and Asia, as well as the Middle East, snapped up the issue. “It shows the exceptionally high profile of Qatar and Doha Bank in the global market space,” he said.

Doha Bank’s issue comes on the heels of a bond offer by Qatar National Bank (QNB) in mid-February, which raised US$1 billion (QR3.64 billion). The dollar-denominated, five year bond, with a coupon of 3.38 percent, was oversubscribed five times, with more than 270 investors seeking to place orders. Ratings agency Fitch assigned an A+ grade to the QNB bond. Another Qatari lender, Al Khaliji Commercial Bank, has also announced it is planning to turn to the market, seeking to raise as much as US$750 million (QR2.7 billion) in non-convertible bonds, which the bank has said will assist it in strengthening its involvement in the country’s infrastructure development. On March 7, the bank’s shareholders voted to approve a proposal for a bond issue at its regular annual general meeting. Robin McCall, the chief executive officer (CEO) of Al Khaliji, said the bond would provide funding for an extended period, necessary to maintain a sound asset-liability match and allow it to play a role in the country’s escalating building programme.

“Bonds are a tool for appropriate longer-term funding for the bank,” McCall said in an interview with the Gulf Times.

The International Bank of Qatar (IBQ) is also considering the bond market to raise ready cash, with officials saying in early February the

by Thomas Bacon

AttrActing InvESTmEnT

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Keep your fINANCES fITWherever you are in the world, most british think budget. While the changes to the United Kingdom tax system or levies on goods and fuel back home may not immediately affect you during your time working in Qatar, Adrian Bliss explains how keeping an eye on the financial lie of the land in the country or countries you have ties with is a good habit to cultivate.

PERSONAl fINANCE

risk change. Where does your risk level currently sit? Are you more comfortable with the increased certainty of bonds or can you tolerate the higher risks associated with equity investments? Do not overlook levels of risk within each asset class. For example, emerging market bonds can be a higher risk strategy than, say, blue chip equities. Also, do not be fooled into thinking cash is risk free. It is not. Inflation will eat away at your savings and that needs to be factored in, particularly at a time of low interest rate returns.

ThE TROwElEven if you are not a gardener, you

will appreciate the importance of getting rid of a few weeds if you want plants to thrive. You need to apply the same rigour to your finances. Do not be afraid to get rid of strategies that are no longer useful or rearrange plans to align them better with changes in your own financial requirements. Before putting your new plan into action, always check on any penalties involved in changing or stopping products designed to work over the long term. Once you are happy you will not be penalised, you can look forward to a refreshed financial plan that will hopefully blossom.

ThE CRySTal BallLook to the future and do a reality check

on your retirement income provision. This is one of the biggest areas of any financial plan and deserves your time and focus spent on it. As an expatriate, you may well have a number of pension funds, which are now frozen and left within the various countries you have worked in over your years abroad. For most expatriates, these locked pots of money are an administrative nightmare, which means they are often simply left to gather dust in a box. Why let paperwork get in the way of boosting your retirement pot? A little care and attention may uncover ways to maximise both old and new pension plans to ensure you are making the most of what you have.

Adrian Bliss is the senior financial consultant of Guardian Wealth Management Qatar LLC.

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Diversifying your investments across a good range of asset classes can help achieve capital preservation and potentially deliver steady returns.

Any changes announced in the budget back home if you are an expatriate may impact on tax breaks you have relied upon in the past. So with the

dust settling on this year’s United Kingdom (UK) budget and a new financial planning year looming, now is the time for expatriates to follow in the Chancellor’s footsteps and come up with your own personal financial budget. To get you started, I have listed a few exercises that will help ensure your finances remain in tiptop condition.

ThE Tax TICKlENo, this is not some weird and wonderful

dance – a tax tickle is what I call an extra bonus for using a particular product or service. Such a tax break should never detract from the main reason for investing in a financial product, which should be its suitability to fulfil its stated financial planning objective. But if a product also offers a tax break, then all well and good. While expatriates working in Qatar enjoy a tax-free income on salaries, the likelihood is that that products and services you are utilising for financial planning purposes will be structured around certain tax breaks for expatriates, or should be. So now is a good time to find out what tax advantages you are legitimately entitled to – life assurance investments, offshore bonds, Qualifying Recognised Overseas Pension Schemes (QROPS), and Qualifying Non-UK Pension Schemes (QNUPS), all come gift-wrapped in tax breaks in some form or another that benefit expatriates savers. Of course legislation can and does change, so you need to make sure you are fully up-to-date with the rules and regulations affecting these products

and that you are using them to the best possible advantage. For example, in the UK budget changes were announced to HMRC’s treatment of QROPS. While this does not have any material affect on consumers, it does impact providers and jurisdictions offering these products. This can indirectly affect expatriates in terms of cost and choice. For example, the Qatar Financial Centre Regulatory Authority is currently considering its own treatment of QROPS.

ThE SEE SawThis is all about ensuring that your

investment strategy delivers consistent returns and avoids the see saw effect of volatile stock markets. Are your investments spread across a good balance of asset classes? Having a concentration of investments in any one asset class or sector, whether this is blue chip equities, bonds or property, is a risky strategy. Why? Because if that asset class collapses then you are likely to see a large percentage of your wealth go with it. And while you may well gain more if that asset class does well, savvy investors prefer to avoid the sleepless nights such a strategy can involve. Diversifying your investments across a good range of asset classes can help achieve capital preservation and potentially deliver steady returns.

ThE lOOKING GlaSSAlice would no doubt approve of this

one. Holding up a mirror to your own risk tolerance is a useful exercise in terms of discovering which asset classes you are comfortable with. Many expatriates find that after big life events, like starting a family, reaching a milestone age, or getting married, their attitudes and responses to financial

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PREvIEWING QATAR’S RECENTLY DELAYED 2012 NATIONAL BUDGET ANNOUNCEMENTMany were eagerly awaiting Qatar’s much-anticipated State budget for the 2012 fiscal year, which is usually announced on April 1. However, the cabinet decided to push back the budget announcement to the end of May because of changes to the governments’ accounting system and the way it prepares budgets. Karim Nakhle looks at the unexpected delay by the Qatari government that is without a doubt in the interest of the country’s economy and its people.

According to a statement by the Qatari government, during the postponement period the government will operate under the

terms of the current fiscal year’s budget. In future, budget estimates will be given for three-year periods and then ratified each year during the period. Qatar booked only a modest budget surplus of 2.9 percent of gross domestic product (GDP) in the 2010/2011 fiscal year, as spending soared 24 percent.

In its 2011/12 budget, Qatar originally planned spending worth QR139 billion (US$38.4 billion) and a surplus of QR22.5 billion, or 4.9 percent of GDP.

Partly in response to political unrest elsewhere in the Middle East, Qatar hiked basic salaries and social benefits for the state’s local civilian employees by 60 percent last September, while military staff received 50 to 120 percent rises. The International Monetary Fund (IMF) estimated such extra social spending would add US$1.6 billion (QR5.8 billion) to expenditure in 2011/12.

An economic adviser to the country’s Emir HH Sheikh Hamad bin Khalifa Al Thani said recently that Qatar’s budget spending for the 2012/13 fiscal year will be much higher than in 2011. Nevertheless, the belief is that Qatar is expected to set a ‘conservative’ government budget for this fiscal year. It will be roughly the same size as the prevailing budget, with a small increase of five to seven percent, as it has not indicated that it plans any further rise in social spending, and is expected to keep capital expenditure at 40 percent of the total expenditure (in the medium term).

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40 percent of Qatar’s 2011/12 spending budget was allocated to infrastructure projects, higher than in the previous year.

The Qatari national budget is in part based on estimating an average price for a barrel of crude oil for the coming year.

FUELLING THE ECONOMYQatar may have a small population, but it

has huge plans for infrastructure development in the next 10 years, funded by its hydrocarbon exports. In March 2011, the Qatari government unveiled its National Development Strategy 2011-2016. This met most expectations, since the GDP real growth remained very high in 2011, reaching over 18 percent (since oil prices exceed the US$70 mark (QR254) per barrel), but slowed down thereafter following the completion of the liquefied natural gas (LNG) programme and mega projects such as Shell’s Pearl GTL facility.

Oil and gas exports account for about half of Qatar’s GDP. The country, the biggest exporter of LNG, was the world’s fastest-growing economy for the past two years, according to International Monetary Fund data.

The cabinet has not yet decided on an oil price for the 2012/13 fiscal year budget,

which is to be released by June, but Qatar Petroleum, the country’s state-run energy company, based its budget for this year on an oil price of US$65 (QR236) a barrel.

In 2010, Crude averaged US$95 (QR346) a barrel on the New York Mercantile Exchange. Qatar based its budget for that year on a price of US$55 (QR200) a barrel. As the current Crude average is fluctuating at an all time high in excess of US$105 (QR382), Qatar Petroleum based its budget on an oil price of US$65 (QR236) a barrel

– a reasonable figure, which will also be a benchmark for the Qatari budget.

MANAGING RISKIn November 2011, Qatar raised US$5

billion (QR18 billion) by issuing sovereign bonds internationally.

The Qatari government seeks to keep inflation at 3.5 percent by issuing bonds and treasury bills, although Qatari authorities have not indicated plans for any further sovereign issues.

The Qatari government seeks to keep inflation at 3.5 percent by issuing bonds and treasury bills.

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Qatar’s current construction boom is being fuelled in a large part due to massive infrastructure spending by the state.

Furthermore, a surge of Qatari debt issues could be expected from banks, since many banks who have already issued their prospectus are lined up, and hoping for at least US$20 billion (QR73 billion) worth of bonds or medium-term notes to be issued in the near future, to ease liquidity in the marketplace.

The construction frenzy ahead of the World Cup 2022 also helped propel annual lending growth to the real estate sector to 95 percent in October, the fastest pace since at least 2008. It slowed to a still-fast 49 percent in December.

The sector is booming, and there are no talks or speculations about a real estate bubble building up, because eventually most of the credit that the banks are lending is to public enterprises, which are running, developing and managing the sector. But the main point remains about disclosures and transparencies, since the public is not fully aware of what plans these ‘public’ enterprises have for the future, or how much excess supply in real estate there is, or whether they are bringing any new real estate. These topics require greater clarity.

In a visit to Qatar recently, the IMF mission had underlined the need to collect data in Qatar’s real estate sector to facilitate risk management by banks, since lending to that sector had been rising rapidly. The IMF also encouraged banks to develop a Corporate Governance code for the real estate developers, as this would contribute to the prevention of excessive risk-taking in the sector.

SPENDING THE BUDGETIn 2011, 40 percent of 2011/12 spending

budget was allocated to infrastructure projects, an even higher amount than in the previous year. Qatar plans to invest between US$160 billion (QR582 billion) and US$170 billion (QR618 billion) on infrastructure and oil and gas projects in the next 10 years. In 2011 projects worth US$85 billion (QR309 billion) were already under development with other projects worth US$130 billion (QR473 billion) planned for the next three years.

Many of these projects were planned before the World Cup 2022 win and are integral to realising Qatar’s National Vision 2030. The World Cup 2022 gives an added impetus for existing infrastructure plans by providing a hard date by which they must be operational.

Specific projects planned included a new national railway system, including a Doha metro, light rail, freight and high speed lines US$25 billion (QR91 billion) slated for completion in 2025; the completion of the New Doha International Airport US$10 billion (QR36 billion); an entire new port US$7 billion

GCC BUdGETS IN 2012The annual budgets of Gulf Cooperation Council (GCC) countries hold special significance because every state in the bloc is an important player in its country’s social and economic fields, as fiscal spending remains the principle engine for economic growth. Therefore, an air of expectancy pervades the business community and the economic sector every time a GCC state is about to release its annual budget. The figures shown in these budgets often point to the direction of economic growth in the region, particularly as the funding of many infrastructure projects is detailed in the budgets.Ever since oil prices began their bull run in 2003, GCC countries never recorded a budget deficit. That oil revenues constitute 80 to 90 percent of budgetary revenues explains this fact. In contrast, budget deficits were a regular feature in Gulf economies almost throughout the 1990s. Thus, oil revenue supported fiscal spending holds immense importance for GCC countries, as whenever its member states get any indication of a prospective rise in oil prices they increase their spending. On an average, oil prices stood at US$100 (QR364) per barrel throughout 2011 and this high price facilitated a hike in government spending in all GCC budgets by 19.3 percent, which amounted to US$359.1 billion (QR1.3 trillion) in GCC public spending in 2011, compared to US$301.1 billion (QR1 trillion) in 2010.It is noteworthy that real surpluses in GCC budgets doubled in 2011 to reach US$106.7 billion (QR388 billion) – compared to the surpluses recorded in the previous year that amounted to US$55 billion (QR200billion) This was despite the increase in total spending of GCC countries by 19.3 percent, as mentioned earlier.This can be largely attributed to conservative oil prices used in the revenue estimates by GCC governments while preparing their annual budgets. For instance, the future oil price estimated by GCC members varies from US$55 (QR200) to US$70 (QR254) per barrel, while the real oil price on average has been much higher than that. Furthermore, rising production in some GCC countries has played a significant role in raising oil revenues, and

thereby public revenues.While the total stated estimates of GCC budgets for 2012 indicate the possibility of a reduction in government spending by 5.5 percent this year below the total of actual spending in 2011, as is shown in the above table, it is expected to exceed the announced figures. In fact, this has been the trend in the last two years. It is also noteworthy that GCC countries have thus far evinced their interest and willingness to carry out the Gulf railway network, whose total cost is projected to reach US$25 billion (QR91 billion). This railway network is expected to be complete by 2017.Such expectations of large increases in public spending are encouraged by expectations of high oil prices, which remained stable above the US$100 (QR364) per barrel level. Most forecasts suggest that oil prices will remain high for a variety of reasons this year. Furthermore, most GCC countries have announced some increases in oil production in early 2012, which will naturally boost revenues for these countries, and will encourage increases in all fields of spending.In this context, GCC governments can benefit from the UAE federal budget experience, which in the last five years succeeded in making its sources of revenues more diversified and less dependent on the oil sector. This diversification process makes the UAE experience so important that it deserves to be studied and utilised amid efforts aimed at diversifying the sources of financing GCC budgets. The GCC budgets are particularly important not only for supporting economic growth, but to secure stability and prosperity in GCC economic and social conditions in general.

The UAE has set an example for the rest of the GCC when it comes to setting a diversified national budget less dependent on oil and gas .

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(QR25 billion) being constructed on a “green field” site; construction of the Qatar - Bahrain Causeway US$4 billion (QR15 billion); the huge Musheireb urban redevelopment US$5.5 billion (QR20 billion) in the heart of Doha; and a planned Doha Bay Crossing US$1 billion (QR3.64 billion) linking the new airport with projects in the northern part of Doha. In addition, there was a major programme for building and expanding roads US$20 billion (QR72 billion), water and wastewater facilities. The Barzan Gas project was the subject of a joint venture agreement with ExxonMobil that will supply gas for domestic use.

For the World Cup 2022, nine new state of the art stadiums will be built with capacities of at least 43,000 each and three existing stadiums will be refurbished at a cost of US$5 billion (QR18 billion). An additional 90,000 hotel rooms are planned. While the oil and gas sector and Independent Water and Power Producers (IWPP) sector have seen some very large project financings in recent years, infrastructure procurement continues to be publicly financed. The government is financing both the new airport and the port. Unfortunately, Public Private Partnership (PPP) has not yet reached the shores of Doha, putting a heavy financial burden on the government which has to bear a huge bill on a monthly basis.

The 2012/13 budget will largely reflect the country’s ambitious expansion plans envisaged in Qatar Vision 2030 by focusing on infrastructure development, with a substantial amount going toward education, health and housing projects. The Ministry of Economy has sent guidelines to different ministries and concerned government agencies detailing how they should approach their budget proposals, by emphasising how they are going to utilise the expected budget allocations to realise the development plans envisaged in Qatar Vision 2030. The proposals have already been submitted, and the new budget of 2012/13 will be unveiled in May 2012, accordingly. According to the National Development Strategy, Qatar plans to invest over QR130 billion in 2011-2016 through its state-linked companies, including about QR100 billion by Barwa Real Estate Company and Qatari Diar for residential and business construction projects. Qatar Petroleum and its subsidiaries are expected to spend a further QR88 billion. State infrastructure spending will likely exceed US$67 billion (QR243 billion), including roads, port, power and water.

After concluding its annual consultation with the Qatari authorities, the IMF said that Qatar’s economy is set to slow next year, but the country would increase its spending to stabilise its economy and insulate itself from the possible impact of the global slowdown expected in 2013.

The belief is that Qatar is expected to set a ‘conservative’ government budget for this fiscal year, roughly the same size as 2011.

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IN THE SPOTlIGHT

QATAR’S DIPLOMAtIC ACt

Known by some as the ‘Switzerland of the Middle East’, at least in a neutral diplomatic sense, under the guidance of its rule by HH Sheikh Hamad bin Khalifa Al Thani, for the past 15 years Doha has proven a worthy and often effective broker of peace deals and international détente in the greater region. Martin Rivers takes a closer look at the country’s diplomatic act and what it means for Qatar.A Syrian citizen screaming at an anti-Syrian rally in Doha, Qatar.

IN THE SPOTlIGHT

49TheEDGE

aRmING ThE dIPlOmaTSIn April 2011, Syrian state media reported that HH Sheikh Hamad bin Khalifa Al Thani, the Emir of Qatar, had sent a letter to Damascus pledging his support against “the conspiracy targeting its security and stability.”Just one year on, and the same Syrian government mouthpiece now accuses Qatar of masterminding that conspiracy. Such is the nature of international diplomacy.

Nevertheless, Qatar’s new perspective of Syrian president Bashar Al Assad could not be clearer – HH Sheikh Hamad closed the Qatari embassy in Damascus last July, and by February 2012 was openly calling for the arming of Syrian rebels. What is less apparent, though, is how this hawkish approach fits in with Qatar’s self-styled reputation for being a regional peacemaker.

“The Qataris decided that we’ve reached a deadlock in Syria,” explains Dr Mustafa Alani, director of security and terrorism studies at the Gulf Research Center, which has offices in Geneva, Switzerland, and Cambridge in the United Kingdom.

With Russia and China exercising their vetoes at the recent United Nations Security Council, and with Syria’s neighbours embroiled in domestic disputes of their own, the international community has shown it has neither the political motivation nor the legal sanction to intervene. In such a climate, diplomatic machinations grind to a halt.

“It is basically a lost battle,” Alani says, noting the brutal effectiveness of Al Assad’s security clampdown, which has claimed up to

11,000 lives to date. “The only way you change the situation is by showing, inside Syria, that the regime has no chance of surviving.

“You have to change the equation and the balance of power in the battlefield by sending multiple messages,” he continues. “The first message, to the Syrian armed forces, is that the regime will fall – so you have a higher rate of defection. Secondly, to regional and international states, you show that putting their money in the regime is no longer a wise policy.”

Though Alani speaks of sending messages, he acknowledges that words alone are insufficient. “We are not talking about diplomacy anymore,” he says. “We are talking about the battlefield.”

Inevitably, any foreign country which interposes itself in that arena will face accusations of meddling. Shi’ite-majority Iran and Iraq have already criticised Qatar for its tough stance. As part of the Shi’ite crescent allied to Al Assad’s Alawite sect, they warn that replacing the dictator could ignite a wider sectarian conflict.

But, as Alani explains, Qatar’s true role in the rebellion may never be fully understood. A more immediate concern for the emirate, therefore, is that it be perceived as a disinterested third party.

To this end, Qatar’s Emir has positioned himself well. Though at the opposite ends of the political spectrum now, Qatar was in the past a trusted and valued partner of Syria. It was Qatari diplomacy that brought Damascus back into the international fold after the 2005 assassination of former Lebanese prime minister Rafik Hariri, and it was the 2008 Doha Agreement which

Qatar’s Prime Minister and Head of the Arab League committee on Syria, HH Sheikh Hamad bin Jassim Al Thani (centre) speaks during a press conference with Russian Foreign Minister Sergei Lavrov (r) and Arab League Secretary General Nabil Al Arabi after meeting in Cairo, Egypt, in March 2012. (Image Corbis)

As the rest of the world shuffles its feet nervously regarding Syria, Qatar is weaving a new scene in its 15-year-long tapestry of modern middle Eastern geopolitical relations.

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effectively averted a Lebanese civil war.Qatar’s credentials as an objective

authority on regional stability are further bolstered by the pivotal role that Al Jazeera has played in the Arab Spring.

With fellow powerbroker Saudi Arabia now echoing calls for Arab intervention in Syria, the Free Syrian Army is confident that logistical, financial and military aid will soon be on the way. Even as the rest of the world shuffles its feet nervously, Qatar is weaving a new scene in its 15-year-long tapestry of modern Middle Eastern geopolitical relations.

dIPlOmaTIC STRIPES“The mediation diplomacy is not new,”

Alani explains. “It started in 1997, two years after the new generation [of Qatar’s ruling family] came to power.”

Qatar embarked on an economic and diplomatic restructuring which would redefine its role in geopolitics.

The Gulf state devoted untold resources to tackling internal and cross-border disputes throughout the region (see box), notching up some notable successes. The 2008 Doha Agreement marked a zenith in Qatari-Syrian relations, closing a tumultuous chapter of Lebanese history. The 2010 Doha Peace Forum was a crucial step towards Sudan’s accord with the Darfur rebels.

Diplomacy is painstakingly slow, however. Despite brokering a ceasefire between Yemeni authorities and Shi’ite rebels in 2007, Qatar last year halted its mediation efforts with the now-departed Yemeni president, Ali Abdullah Saleh, accusing him of intransigence.

Efforts to produce dialogue between the US and Iran – with whom Qatar shares the world’s largest natural gas field – have been equally fruitless, as evidenced by the Islamic Republic’s heightened rhetoric.

Perhaps the greatest disappointment to date has been the Taliban’s much-hyped office in Qatar, unveiled late last year. Talks were suspended in March 2012, and violence in Afghanistan has not abated. Likewise, though Qatari mediation efforts between Palestinian factions Hamas and Fatah have not formally collapsed, the Doha

Declaration brokered in February looks increasingly shaky.

Nevertheless, Qatar keeps talking. “The Qataris have no internal problems,” Alani explains. “There is no opposition; there is no political activity; there is no question mark on the legitimacy of the ruling family.”

This stability affords Qatar’s ruler the legroom to put his financial and diplomatic wherewithal to maximum use elsewhere. Beneath the surface, the emirate’s socio-political makeup is perfectly suited to such interlocution. Although its religious roots lie in Wahhabism – currying favour with the likes of the Taliban – Qatar has spent years balancing this with progressive and tolerant policies that sit well with the West.

The US State Department’s International Religious Freedom Report 2007 leaves little doubt as to its success in this endeavour, stating unequivocally, “There were no reports of societal abuses or discrimination based on religious belief or practice [in Qatar], and prominent societal leaders took positive steps to promote religious freedom.”

Alani agrees, adding, “It is very mild, very moderate. It is not politicised Wahhabism, and this is important. Qatar is different from Saudi Arabia.”

And so it is that HH Sheikh Hamad bin Khalifa Al Thani enjoys a fertile ground for international diplomacy and objective mediation. His country serves as a natural bridging point between the extreme ends of the

regional and global socio-political spectrum.This calling has gathered momentum

in recent times. The United States (US) is reluctant to pursue overseas nation building – chastened by the jingoism of the George W. Bush years – and regional powers like Egypt and Saudi Arabia are struggling to re-define themselves following the Arab Spring. “There was a huge gap in international diplomacy for a role which Qatar now occupies,” Alani notes.

lIByaN TEmPlaTEReturning to the Syrian conflict, the

gradual implosion of Gaddafi’s regime in Libya offers a template for the next wave of Qatari action.

Early on in the Libyan dispute, Qatari foreign minister, HE Sheikh Hamad bin Jassim bin Jaber Al Thani, was careful to ensure all diplomatic overtures had been exhausted before calling for military intervention. When the talks reached an impasse, however, as now appears to be the case in Syria, Doha was decisive in hosting a Libyan contact group that galvanised international action.

Though at the time the group spoke only of a “temporary funding mechanism” for Libyan rebels, it later emerged that hundreds of Qatari troops had joined the battle. Doha also delivered armaments, including Milan anti-tank missiles, and despatched six Mirage fighter jets to enforce the North Atlantic Treaty Organisation’s ‘no-fly zone’.

According to recent news reports, Qatar and Saudi Arabia have been advised not to arm rebel fighters within Syria by western nations and instead rely on further diplomacy to attempt to resolve the ever-worsening situation in that country. (Image Reuters/arabianEye)

you have to use the Russian 9M133 Kornet, because again it is already inside Syria.”

Deploying the same weaponry used by national troops has two benefits. Not only will defecting soldiers be familiar with the technology, but it is also harder to identify the source. “No-one can say this is outside supply,” Alani notes. “You can say they have been stolen from [Syrian army] storage.”

There is a sense that preparations are already underway. Media reports suggest Qatar has budgeted for tens of millions of dollars of anti-tank and anti-aircraft missiles. Saudi intelligence officers are reputed to have met Syrian opposition figures in Europe to discuss supplies. And speculation abounds that Gulf nations are turning a blind eye to fundraising by expatriate Syrian businessmen.

Beyond the practicalities of mounting a covert campaign, there remains the burgeoning question of why Qatar is willing to stick its neck on the line.

Here there are no simple answers. Cynics point to Qatar’s Islamist leanings, noting

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IN THE SPOTlIGHT

Alani stresses that so far there is “no evidence” weapons have been sent to Syria, but he is confident anti-armour devices will be a game-changer for the rebels.

“You have to look at what the national army is using, and you supply similar types,” he explains. “[In Libya] they decided on Milan anti-tank missiles, because the Libyan army has Milans, and already has people trained to use them … In the case of Syria,

Dr Mustafa Alani, who is the director of security and terrorism studies at the Gulf Research Center, tells TheEDGE that Qatar is ideally placed geographically and politically to act as a diplomatic peace-broker and negotiator in the wider MENA region. (Image courtesy Gulf Research Center)

that in November 2011, one month after Gaddafi’s death, the Libyan envoy to the UN complained that Doha was still providing arms and money to Islamist groups. Similar accusations have surfaced over its alleged funding of Egyptian Islamists, rattling some nerves in the West.

But to others a combination of self-interested pragmatism, financial wherewithal and international prestige seems a more plausible explanation.

“Nobody believes that Qatar has imperial ambitions,” Alani notes, emphasising its miniscule army. “There is no ulterior motive, and this is a source of trust for the Qataris.”

Foreign minister Hamad bin Jaber Al Thani has often said that Qatar wants “good relations with everyone.” For a country that enjoys such mixed loyalties – sharing North Field gas reserves with Iran, for example, while also hosting the US military’s Al Udeid Air Base – this idealism of neutrality makes perfect sense for Qatar as it forwards its strategy of becoming a central, peaceful, economic hub in the Middle East.

TAlkING PEACE – QATAR’S RECENT DIPlOmATIC HISTORY• Lebanon – The 2008 Doha Agreement is the largest feather in the diplomatic cap of HH

Sheikh Hamad bin Khalifa Al Thani, ending an 18-month political crisis and establishing a unity government. Hezbollah’s eventual violation of the peace accord precipitated the collapse of Qatari-Syrian relations last year.

• Afghanistan – Qatar’s relations with the Taliban pre-date the 2001 US invasion. The insurgent group was close to opening a liaison office in Doha this year, but progress stalled when a US soldier massacred 17 Afghan villagers in March.

• Sudan – The 2010 Doha Peace Forum paved the way for a settlement between Sudan’s government and Darfur rebel group the Liberation and Justice Movement. The 2011 Doha Agreement that followed nominally ended the dispute, though other rebel groups abstained from the treaty.

• Yemen – A ceasefire agreement in 2007 raised hopes that Shi’ite insurgents would lay down their arms, with rebel leaders going into exile in Doha. But violence flared up again the following year, and more recent Qatari mediation with Yemeni dictator Saleh proved unsuccessful.

• Palestine – Rival Palestinian factions Fatah and Hamas in February 2012 signed the Doha Declaration, which lays the groundwork for a unity government. Qatari dialogue with Hamas is vital to the peace process, because neither Israel nor America will talk directly to its leaders.

• Israel – Qatar had since 1996 been the only Gulf country to have trade ties with Israel. Relations soured after the Jewish state’s 2008/09 invasion of Gaza, and two attempts by Doha to restore diplomatic links were rebuffed in 2010.

Qatar’s idealism of neutrality makes perfect sense for the country as it forwards its strategy of becoming a central, peaceful, economic hub in the middle East.

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53TheEDGE

Generation Y were brought up (with all good intentions) with an abundance of high self esteem and the constant mantra from their parents

that they can and could be anything they want. One author describes Generation Y as “Generation X on fast-forward with self-esteem on steroids”.

The fact is that Generation Y was also brought up in an environment where everyone is a winner. Nobody failed. Trophies, certificates and rewards were handed out simply for just turning up to school and for demonstrating expected codes of behaviour like simple good manners. As a result, Generation Y has never really experienced failure, nor the coping mechanisms to deal with failure. Fast forward this into the

Meet ‘Generation y’ – born with an iPhone in one hand and setting up their Twitter account with the other. So just who is Generation y and where do they fit in to the modern business landscape? Deborah Rogers looks at the challenges facing managers and recruiters as those born between 1981 and 2000 hit the Middle East job market, and for the first time all three generations, ‘Generation X’, ‘Generation y’ and the ‘baby boomers’ – are in the workforce simultaneously.

workplace and we find that Baby Boomers and Generation X managers are confronted with a workforce that simply does not cope with being reprimanded or given constructive feedback that they are just not performing or delivering on a project.

For the first time in history, organisations are confronted with three generations working alongside each other. So what does this mean? Well that depends on who you speak to. Each generation has a set of unique skills and both strengths and weaknesses. The majority of managers in today’s workforce are Baby Boomers and Generation X, and you will hear them on a daily basis complain about the Generation Y employees. If you are one of these people, you may not like the fact, but as much as you complain, guess what? You created them. So if you are a Baby Boomer

or Generation Xer reading this article, time to do what you do best and accept responsibility. But how do we do this and how do we work out the best way to performance manage Generation Y?

Let us first have a look at some of their remarkable positive points.

POSITIVE TRaITSGeneration Y are extremely tech savvy.

They are creative, innovative and make fantastic team workers, something the Baby Boomers and Generation X could learn from. They are very good at multi-tasking and have no problem producing their work while listening to their iPods and chatting on

The majority of managers in today’s workforce are Baby Boomers and Generation Xers and you will hear them on a daily basis complain about the Generation Y employees.

COVER STORY

University students checking their smartphone gadgets at the campus of College of North Atlantic Qatar.

COVER STORY

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instant messenger at the same time, much to the horror of their managers. They are the most diverse generation in history in terms of ethnic heritage, geographical origins, ability/disability, age and language.

Generation Y are very accepting of others and are used to working together. They are also the first generation to have such close bonding with their parents and often refer to them in times of need or decisions. Generation Y also work to live, not live to work like so many of the Baby Boomers and Generation X did or still do. They will speak their mind as they have been taught to and are not intimidated by someone’s status or position, and will often say what they think and question everything.

Why is this? It can be extremely frustrating for the Baby Boomer and Generation X manager who have been brought up with a different way of doing things and work ethics. They were taught to work hard, put in extra hours (often to the detriment of their families and sometimes health) and loyalty was and is still very important. Do not get Generation Y wrong, they too support loyalty, but it must be earned.

NEw GENERaTIONGeneration Y are accustomed to getting

what they want, when they want it. They have no desire to wait for five years to get that so-called promotion. If their organisation does not provide training for self and professional development, opportunities to advance and do better – they simply move on. Agreed it may be slightly different at the moment due to the economic situation in the majority of countries, but this is how they think. They do not perform under managers who micromanage and will not stay and work in an organisation whose culture supports micromanagement.

So looking at this, one can say we can change this. After all they are the generation of our future and will be very soon driving the world forward. The problem we face is their inability to be told by their experienced Baby Boomer and Generation X managers, “You are just not performing”.

This is where Generation Y tend to look at managers as if they have just spoken to them in a foreign language, or their reply is, “I need to discuss this with my parents”. You see, this type of feedback for the Generation Y employee is something that not many of them

are used to, coupled with the fact that they have no basic coping skills to deal with this.

OVER-PamPEREdGrooming is also another issue for

many employers of the Generation Y group. Generation Y are quite happy to come to work in jeans and T-shirts. They also need to be reminded, particularly in the Middle East, that short skirts, tight dresses and transparent clothing is not acceptable. Men also need to understand that jeans hanging around their knee caps with their boxer shorts showing may be okay back home, but not here in Qatar.

Some might say that this is a way of expressing oneself, but we need to explain to them it is about respecting someone else’s culture and understanding that we are a guest in this country. As the old saying goes, when in Rome… So how do we handle this major issue in many organisations? The Baby Boomer and Generation X managers are not going to be around forever, so we must do what we can to assist the Generation Y employees with coping skills. I hear many managers complain about the time they spend on their staff and how “they just do not get it”. Well, if what we are doing is not working then it is we that have to change.

Generation Y can be considered ‘high maintenance’ and require weekly feedback reports on their performance (with some it can be daily). I can remember one employee coming to see me because she felt her manager did not like her. When I asked her why she felt like this, she replied; “he has not praised my work in two weeks”.

Remember when the ‘ATM card’ replaced the traditional bankbook? This was a major development and significant change for many of us (that is Baby Boomers and Generation X). In a human resources context, now another significant change is here, and it is how we manage in the workplace and manage the Generation Y employee. As with the traditional bankbook, many of us were gripped with fear and now do not even think about it. This must be how we take on this rapid change in the workplace, because if we do not, the problems are only going to intensify.

Generation Y requires clear guidelines and clear expectations. Clear ground rules

Young Qatari entrepreneurs at Bedaya Center, a centre specialing in training and supporting entrepreneurs who would like to start up their own business.

55TheEDGE

COVER STORY

are also essential. These are the basics and must commence as early as the interview stage. Generation Y is used to being highly parented and receiving loads of attention. In the workplace this is also the case.

Make sure you have regular one-to-one meetings. Stick to the time and stick to the agenda. Just as you complain about their lateness, many Generation Y employees complain about the lack of commitment by their managers in sticking to the agreed catch up times. Taking time with them sends a clear message that you care and they are important to you.

Many older managers complain on a regular basis that Generation Y simply do not care. I challenge this, as Generation Y just want to know ‘Why’? Explain the reasons behind why they are performing a task a certain way. What are the benefits and what are the disadvantages? Generation Y are often described as selfish and self-indulgent. Perhaps look at it from a different perspective. Generation Y take a lot of pride in helping others and contributing. Many Generation Y employees volunteer to help others or for a much needed cause. They like to feel needed, that they have contributed and helped make a difference.The bottom line

here is change is imminent in how we manage people. It does not mean we have to change our work ethics and that fundamental basics of good work performance are discounted, but as managers of Generation Y we must step out of our ‘comfort zone’ and tweak the way we manage in order to get a better result and a more engaged and dynamic team.

Generation Y are the future of our organisation and here to stay. They are flexible, adaptable, excellent team players and value helping others and place a high emphasis on relationships in the workplace. They are also outspoken, take risks, are technologically advanced and learn by doing, not listening or being lectured to.

Generation Y may have been afforded many things that their parents or older siblings went without and are often seen as ‘spoilt brats’ but maybe, just maybe they are merely focused on what they want.

In Qatar, it is very common for many of us to be out of our comfort zone when we first arrive. The way business is conducted is generally different to what the majority of people are used to. One of the biggest issues we face here is the magnitude of nationalities and cultures. Put this together with the generational issues and we have a bigger problem. Organisations must ensure that not only are they working towards adapting their management style, but that they take the time to understand the different cultures of these three age groups.

Deborah Rogers is director of human resources at Qatar National Convention Centre.

GENERaTION whO?In the manner of the analysts who like to create defined parameters around everything, including recent generations of human beings, those who fall between certain age groups in the world can be classified as being part of three age groups (though of course, the dates given are not hard and fast and those born in one era can exhibit some or all of the traits of another, with a five year crossover period usually the norm):

BaBy BOOmERS (1946 TO 1964) – As servicemen returned from World War II and the world’s economy began to recover through the 1950s, there was a ‘boom’ in births in most of the world, more than 70 million in the US alone. Mostly brought up with ethics of hard work and personal sacrifice in the conservative 1950s, today Baby Boomers would typically be in ownership or top managerial positions. Many have embraced new technology but many have not, which combined with a different set of values with Generations X and Y, can make for communication problems in the modern workplace.

GENERaTION x (mId-60’S TO 1980) – Mostly the offspring of Baby Boomers, Generation X (a term made famous by author Douglas Copeland in his eponymous book), were the first to really embrace the myriad of new technologies that emerged in the 1980s and 1990s, and have a far more free and liberal approach to society and the workplace than their predecessors. Their values and work ethic, especially as they have grown older and many now have children of their own, are however probably more aligned with the previous than the next generation.

GENERaTION y (mId-60’S TO 1980) – One of the more stark differences between older Gen Xers and Gen Yers is that the first are said to type mobile text messages with one thumb and the other, much faster, with two. So though they have much in common, this humorous anecdote outlines the differences between the two youngest generations in terms of technology. However, this is also considered a more self-centred generation with higher expectations in the workplace than their predecessors and, other key differences which enhance misunderstandings and tension between them.

Organisations must ensure that not only are they working towards adapting their management style, but that they take the time to understand the different cultures of the generations.

BUSINESS INTERVIEW

He worked his way through the organisation, starting out in retail banking, becoming a successful branch manager in Al Rayyan and at a new branch in Al Sadd. Mostafawi then managed the trade services department of HSBC, which was largely associated with projects and trade, and moved on to become the head of “wholesale banking”, covering both corporate and investment banking, before becoming chief executive officer (CEO) in October 2008.

lOCal KNOwlEdGEAs the first Qatari head of an international bank in Doha,

Mostafawi agrees he has perhaps been somewhat overhyped, as there are in effect only two such institutions operating on a large scale and in retail banking in the country. Nevertheless Mostafawi humbly acknowledges the importance of his posting for HSBC – which has been present in Qatar since 1954 – and the local banking sector.

“I think the significance to it is that it is always good to have somebody from a country that understands the local culture well,” Mostafawi expands. “Someone who understands the sensitivities and needs and wants of the community. For example, I have a global exposure by being part of this organisation and at the same time a Qatari like myself can understand what the needs of my country are. I am in the middle of that and I can articulate that. And we do that very well, for example, we have seen over the past six or seven years that Qataris and Qatari businesses are increasingly becoming global and investing beyond Qatar.

“We are a strong emerging market bank and this is one of the areas that the Qataris have interest in,” continues Mostafawi. “China, India, Malaysia, Indonesia and even some of the developed markets where we have strong connectivity, like France and England. And we help our clients that way. So me being a Qatari helps in a better understanding of our client needs.”

BUSINESS INTERVIEW

55TheEDGE

Sipping a cup of coffee he made himself from a small machine in his Doha office, Abdul Hakeem Mostafawi reveals he always wanted to work for an international bank. Following his graduation from the University of Arizona in the United States, where he earned a

Bachelor of Science in business administration major, and a minor in marketing, he joined HSBC in their internship programme in their Hong Kong office in 1989.

His career development, says Mostafawi, has always been orientated towards passion, commitment, hard work and the rewards that would inevitably follow. And as an international institution he felt HSBC would be the ideal environment, in which he could learn the banking profession from different colleagues from around the world. His tenure in Hong Kong, Mostafawi adds, was also a great experience and preparation for his subsequent positions, as it was a highly dynamic business atmosphere – much like Qatar is today.

“The timing was good,” Mostafawi elaborates, “because there was this process that was happening politically, but at the same time you are where the environment was very vibrant. For me as a Qatari being there was a great experience.”

Businesswise, Mostafawi feels the buzz of Hong Kong in the late 1980s has much in common with Qatar in 2012, although with obvious exceptions. “It is different because this area is resources, oil and gas orientated, whereas that area is export and services driven,” he says. “But the similarity is in a sense that there is a boom. Rapid growth that was happening there, and now here, the people and the kind of sentiment.”

After a year in Hong Kong and a short stint in London, Mostafawi returned to Qatar to be closer to his family and further his career by contributing to HSBC’s operations here and the development of the country as whole.

As the first Qatari head of an international banking institution in Qatar, Abdul hakeem Mostafawi has become one of the most high profile bankers in Doha since his appointment as the CEO of HSbC more than three years ago. TheEDGE sat down with Mostafawi recently to discuss what motivated his rise to the top echelons of local banking, and to obtain his insight and perspective on where the banking business is going in the country and Qatar’s overall economic environment as whole.

A GlOBal vISION

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AN EXCLUSIvE INTERvIEW WITH ABDUL HAKEEM MOSTAFAWI, CEO OF HSBC QATAR

Mostafawi also believes that as a Qatari his clients, peers and colleagues hold him more accountable. “The Qatari people expect you to deliver because you know what they want,” he says.

Of equal significance, continues Mostafawi, is that his appointment reflects the culture of HSBC itself. “23 years ago, HSBC invested in me and likewise today we are investing in so many other Qataris to become future leaders of this organisation. We are a bank that has been here for nearly 60 years, and we did not just come to do business, we are part of Qatar’s progress all along, as also playing a significant role in the development of local talent.”

As far as both Mostafawi’s and the bank’s involvement in Qatar’s business and social communities are concerned, the two are intertwined. He is a co-founder and member of the International Chamber of Commerce in Qatar (ICC). He also serves on the board of the Qatar British Businessmen’s Forum and Injaz Qatar, and is a member of the Young President’s Organisation (YPO).

HSBC, Mostafawi explains, has certain expectations of the organisation’s leaders. “Community connectivity is very important,” he confirms. “What are you giving back? For example, HSBC is part of ICC International. So where is the value by having ICC here? Well, Qatar is growing in trade on the back of significant investments in the hydro-carbon sector, so it is important to bring on those NGOs and other bodies to play a role here. And for ICC International, it brings in the know-how of how to conduct trade, arbitration, etcetera. Then you have Injaz, which is giving back to schools, and other organisations and myself and a group of colleagues from different organisations are trying to give something back to the community.”

hEalTh aNd CONSOlIdaTIONAs far as the Qatari banking sector goes, predictably Mostafawi

feels it is strong, though he says this is reflective of the economy in general. Nevertheless, he feels there are challenges that remain for the sector, in as much as it is not immune to the global economic slowdown and recovery process. “Qatar is part of this world and if it gets impacted, so do we somehow,” he says. He adds however that this will ultimately have a positive effect on banking and businesses in the country, as it has caused us to revise our thinking in a way we might not have had the global economy continued to grow unabated.

“I think the biggest challenge for the sector in Qatar is that it is over banked,” he says. “Consolidation is going to be crucial. It is inevitable and it is going to be market-driven. Because if you don’t have economy of scale, after a while you are going to face these challenges, such as ‘What’s next?’”

As far as HSBC being part of this consolidation process, Mostafawi is candid, adding that the bank would be open to acquisition opportunities should they arise.

QaTaR OPERaTIONSAs far as the focus of HSBC’s Qatari operations are concerned,

the bank has a diverse range of activities, which Mostafawi says are all equally important, as are all of their customers, who range from

expatriates to local individuals and companies, large and small. “Just because someone is from a large corporate doesn’t mean he is better than the SME. It is just two different things,” he explains. “In retail we have an advance proposition – very much about high income salaried customers. That’s one. And we also focus on high net worth individuals through our Premier and Private Banking propositions. These two propositions are important because we add value to these customer segments through our international network as the businesses and customers become more and more global and our networks support the process.”

Here Mostafawi underlines that the value an international bank such as HSBC brings to these customers is its global connectivity, and that advanced account holders can open accounts and transfer funds wherever the bank has branches.

“One other area we are focusing on here in Qatar,” continues Mostafawi, “is wealth management. We believe there is a lot of scope for that to develop given the fact that Qatar has among the highest per capita income.”

In addition to general corporate banking products and services, HSBC also has an offering called Leading International Bank (LIB), serving firms that have branches in different countries. “Our clients can centralise their operations from wherever their head office is,” says Mostafawi.

“We are also a window into investment into this country,” he continues, “because a lot of the foreign investors use us as an independent party to evaluate opportunities in Qatar. So as a result we have a significant segment of the multinational business here. Also we have the investment banking arm of the bank, this requires a bit of experience and expertise in areas such as advisory towards mergers and acquisitions and initial public offerings, so it requires more knowledge and skill, in which we are supported by a group of people pooled from our global centres of excellence and we use these talents all around the world, serving the group globally.”

Technology, says Mostafawi plays a big role in both the communication aspect internally in HSBC, as well in servicing customers. “We are one of the few banks,” he says, “that you

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BUSINESS INTERVIEW

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“I have global exposure by being part of this organisation and, at the same time, a Qatari like myself can understand what the needs of my country are.”

can connect yourself to the world through our payment and cash management and trade and supply chain channels, whether you have an account in America and one in China you can do everything from here. There are only one or two banks around the globe who can do this effectively…the other aspect of it is the retail sector, where we do a lot of product development and improve the services all the time.”

Mostafawi reveals that HSBC’s approach to developing new products has always been steady. “This is because we are a conservative bank and I like it, this is the way it should be,” he says, adding the customers’ needs and the integrity of their transactions must always come before profits. “You need to strike a balance between the shareholder’s objectives and the customers and depositors.”

ECONOmIC OVERVIEwIn discussing the role of technology in modern banking,

Mostafawi points out that there is still a long way to go in improving the way this can add value to customers and clients in the banking sector, particularly in the Middle East. “Different countries are in different economic cycles,” he says. “That’s why they are called developed or emerging. Young people are adapting to new technologies more than ever as they are not afraid to try something for the first time. So it is evolving in a way. In the future, customers will use more alternative channels.”

Mostafawi is highly positive regarding the future of Qatar’s economy. “Growth in a country like Qatar is very much driven by the government and its progressive policies,” he says. “There is so much infrastructure related spending coming up, so that is one sector, then you have the oil and gas side. The upstream is more or less developed, so there is much focus on downstream.”

One area of concern however for Mostafawi is inflation, especially when it comes to the rapid growth that is set to continue for many years to come, and also why he agrees diversification of the economy is key.

“I think this is where we are very lucky and proud to be in a country where the leadership really has the 2030 Vision,” he closes, “and today we are also one of the biggest events and conferences destinations. Politically the country has a much more prominent role. Socially and culturally there is lot happening at the same time. It is great to be part of this nation’s story.”

“One other area we are focusing on here in Qatar is wealth management. We believe there is a lot of scope for that to develop.”

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BUSINESS INTERVIEW

BuSineSS MAnAGeMent • prOductiVitY And WellBeinG • leGAl inSiGht

alSO IN ThIS SECTION:

KNOWLEDGE & ExPERTISE

• Productivity and wellbeing: Lauren Penny explains how organisations need to find their balance and niche to create a sustainable reward strategy to drive employee performance. (P.64)

BRINGING OUT ThE BEST IN EmPlOyEES (P.62)

• legal Insight: Garrett Grennan and Ben Moylan discuss what every business should know about the Qatari withholding tax law. (P.66)

Julian Birkinshaw, vyla Rollins and Stefano Turconi reveal the findings of their research of an employee’s

needs, doubts and aspirations and how managers can effectively utilise this information

BUSINESS mANAGEmENT

Employees who find their work frustrating, boring and worthless have found their hero

in Scott Adams’ Dilbert, the nine-to-five man who lets us know just how bad managers can

be at their jobs. Julian Birkinshaw, Vyla Rollins and Stefano Turconi believe that bad

bosses can change to become true leaders.

Most books written on management and leadership are written from the perspective of the manager. While

there is value in such books, they pay far too little attention to the fears, doubts, aspirations or needs of the employee. In our recent research (which involved interviews with more than 50 employees across a dozen companies as well as questionnaire data from more than 200 employees), we took an employee-centred approach to management — starting with the view that management should be about ‘seeing the world through the eyes of the employee’. According to this perspective, the job of the manager is essentially to enable employees to do their best work, to help them reach their own personal goals while also delivering on the organisation’s goals. This employee-centred approach starts with a much deeper understanding of the worldview of employees, and it seeks to recast the role of the manager as one of tapping into an employee’s strengths, enabling aspirations and negating his or her fears. Thus, we sought employees’ views on the aspects of their work that they found motivating and engaging, as well as the various concerns, fears or frustrations that got in the way of them delivering their best work.

whaT EmPlOyEES waNTThere was plenty of variation in the

specific answers to the questions about what makes work motivating and fulfilling, but there were five characteristics that employees seemed to recognise as important and valuable.• Having responsibility for doing

something worthwhile• Being given a high level of freedom for

how results are achieved• Having an opportunity to extend oneself

and to develop expertise• Being given an opportunity to work with

good colleagues• Achieving recognition for doing a

good jobSurprisingly, money is nowhere to be

seen (it was mentioned only by a couple of

BrINGING Out thE BEST IN

EmPlOyEES

SEE ThE wORld ThROUGh ThE EmPlOyEE’S EyES The purpose of this research was to take an employee-centred perspective, so it should be no surprise that we see one of the hallmarks of an effective manager as his or her ability to put themselves in their employees’ shoes. There are some alternative ways of getting into the heads of our employees, such as: Institutionalised skip-level meetings – these are an opportunity to talk directly with the two layers below you in the hierarchy. Informal brown-bag lunches with employees serve a similar function. Smokers corner – if you go outside for a cigarette (not that we recommend anyone smoke), you find yourself striking up conversation with a random slice of people at all levels in the company, typically in a much less hierarchical manner than if you bumped into them in a formal setting. Reverse mentoring, one of the people we interviewed for this research is a 48-year old test director at Microsoft. In a switch of the classic roles of elder-coaching younger, a 28-year-old employee is mentoring him, primarily to make sure the boss stays up to date with the latest technology trends. Naturally, they end up discussing a wide range of issues on a much more informal basis than would normally be possible.

wORK yOURSElF OUT OF a jOBThere are often overlapping roles between

layers in a hierarchy, leading to disagreement and frustration. One useful way of approaching a management job is to imagine that the role will not exist in, say, two years’ time and that your job is to train everyone so that they can do your job as well as their own. Doing that encourages you to hire and promote the best people. It forces you to question why you do certain things at all, and it inspires you to delegate many of your tasks to the people working for you. There are no shortcuts to becoming an effective manager. What is needed is not additional advice on what to do but, instead, some insight into how we might do it. Our research suggests that the best managers are those who adopt the discipline of looking at the world through the eyes of their employees.

recognition and praise and is not afraid to make tough decisions. A bad boss tends to provide confusing or unclear objectives, micromanages and meddles, is selfish and focused on his own agenda, provides little and mostly negative feedback and dithers.

maNaGERIal hURdlESWe asked many of our interviewees

why potentially good managers become bad ones. We heard a wide variety of answers, all of which appear to have some validity. These are grouped into three basic categories. Managing well is harder than it seems. For most aspects of management, it is possible to get it wrong in both directions. So, while giving employees space to act is a good thing, it is also possible to give them too much space. Providing challenging tasks is good, but impossible tasks are not. Balance is the key in both areas.

But what makes this really difficult is that each employee has a unique set of skills and motivations; the right balance for one person is likely to be the wrong balance for the next. Managers have competing priorities and limited time. If you only had a single direct report, it would be fairly straightforward to structure his or her work to make it suitably challenging, to provide regular feedback and to make sure he or she had the resources he or she needed to succeed. But many managers have five or six people reporting to them, each with different needs. Managers have their own work to do, they have bosses of their own to answer to and they frequently travel a lot. They also have calls on their time from dozens of other people across the organisation. Throw all these things into the mix and then add whatever economic or corporate crisis has just hit, and it is no surprise that even the most well-intentioned and skilled executives fail to do the managerial part of their jobs well on a consistent basis. There are just not enough hours in the day. Managing well requires non-intuitive behaviour. The third reason why many managers fail to walk the talk is that being a good manager requires them to act in non-intuitive or ‘unnatural’ ways.

BUSINESS mANAGEmENT

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people, and these were salespeople with a large variable component to their pay).

The five characteristics were consistently mentioned across a wide variety of contexts from white-collar office workers to factory machinists, frontline hotel employees and information technology (IT) help desk workers. There may be some employees who want precise instructions and narrowly defined tasks, but we did not meet any of them in this research.

Most working environments, we believe, would benefit by utilising these broad principles in their management practices.

whaT FRUSTRaTES wORKERSTo determine how best to motivate and

engage employees is to start from the negative; that is, to manage in ways that eliminate the things that worry workers or keep them awake at night. Effective management, we believe, is potentially as much about getting rid of these negatives as it is about enhancing the positives. The major sources of fear or concern, in hierarchical order, boiled down to seven issues.• Lack of opportunities for personal

development• Fear of failing to deliver on (high)

expectations• Concern with the stress of the work• Frustration with ineffective processes• Concern about not fitting in• Concern with uncertainty and change• Fear of redundancy

The first and most obvious point is that it is always good to know what your employees are worrying about, what their most immediate and easily articulated concerns are. Second, and perhaps more insightfully, the things that are worrying your employees may also be indicative of their overall situation, including the things that they are content with.

GOOd BOSS? Bad BOSS?We asked respondents about their

current bosses and specifically what made them effective or ineffective. A good boss gives employees challenging work to do, creates space for them to do it, and provides support when needed, gives

hOW DO yOu REWARD EmPlOYEE

PERfORmANCE? BY FINDING thE BALANCE OF fINANCIAl AND

NON-fINANCIAl NEEDS.Organisations need to find their balance and niche to create a sustainable reward strategy to drive employee performance. Two key triggers for companies are to save cost and to maximise expenditure. How can organisations achieve this in a highly competitive, evolving and increasingly mobile workforce? Lauren Penny explains further.

PRODUCTIVITY AND WEllBEING

are flexible working arrangements, large-scale communication events, out of office team meetings, team building and wellness activities. Organisations that often conduct focus groups on specific topics with talented employees can generate quality feedback on how to create more value for the business. Listening to disgruntled employees is a powerful tool to hear the concerns and bring necessary actions to resolve the conflict; this in turn turns the disgruntled employee in to a dedicated and performing employee.

Employees crave feedback from managers. According to Gallup, 25 percent of employees place themselves in the ‘ignored’ category, supported by a study by Adecco that 75 percent of employees mention that their immediate line manager is lacking in motivational skills. Why is it that these simple yet effective managerial actions are lacking? A simple thank you, praise for a job completed, positive reinforcement and even public praise will raise motivation and reinforce repeat positive behaviour by the employee.

THREE MOTIVATORSOwnership, empowerment and the chance

to lead a project are other top motivators that boost and inspire employees. Given this chance during challenging times can reflect a strong contribution by the leading employee. The sense of connection, enthusiasm and commitment to the projects successful delivery ensures employees are determined to see the project through to completion, offer ideas and uncover new ways to achieving greater project results. The reverse can occur when employees do not feel they have ownership. They quickly lose interest or desire in contributing new ideas for a successful result. Ownership of projects together with establishing leadership capabilities will in addition provide further long-term benefits to the organisation.

Organisations investing in nonfinancial motivating tools by upskilling managers through training sessions, leading by example and new strategies built into the culture of the organisation can boost engagement not only within teams but across the entire company. The traditional managerial method that money is the only thing that counts, is outdated.

With economical challenges today, and declining corporate revenues, companies are faced with the

constant battle of how to save costs so as to achieve corporate Key Performance Indicators (KPI’s) while continuing to motivate their employees to deliver expected results.

Companies review the return on investment, a QR1 spent is QR1 spent, but what is the value of the return on this QR1? What is the best means to spend the QR1 so as to motivate and engage employees? Is it best to spend more on salaries, or does there come a time when increasing salaries has a decline on the effectiveness and effort by employees? This is a subject of much debate.

Financial remuneration is important; however, once employees are satisfied, further increases do not differentiate and improve the employee’s delivery. This is when Maslow’s hierarchy of needs kicks in. Once employees have met the basic need of salary, they move onto the next level for motivation. Thus, financial remuneration is of much more value for attracting and retaining talent than it is for motivating people. Once companies have established the right pay for the role employees perform, suddenly the issue of compensation is taken off the table. Employees do not think about compensation but they think more about the actual work and other factors that motivate their performance.

MCKINSEY STUDYA McKinsey Quarterly research study

found that positive leadership attention, praise from immediate managers and opportunities to lead projects are the most effective motivators in any organisation, these being more effective and of no less value than the

Employees do not think about the compensation but more about the actual work and other factors that motivate their performance.

PRODUCTIVITY AND WEllBEING

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financial incentives, ranked highest, such as cash bonuses, pay increases and stock options. Numerous studies concur with these findings, that for decades the most effective motivator has been a person’s immediate manager recognising his or her for good performance.

The survey revealed that of executives, managers and employees from a range of sectors, 67 percent of respondents rated ‘praise and commendation from immediate managers’ as an effective motivator, 63 percent rated ‘attention from leaders’ as effective, and 62 percent rated ‘opportunities to lead projects or task forces’ as effective.

In comparison to that 60 percent of respondents rated ‘performance-based cash bonuses’ as an effective motivator, 52 percent rated ‘increase in base pay’ as effective, and 35 percent rated ‘stock or stock options’ as effective.

When employees feel companies value them, take their well-being into consideration and strive to allow opportunities for them to advance in their career – they feel loyal and give extra discretionary effort towards the organisation.

So why is it that managers still lack the non-financial methods to motivate people? Is it that nonfinancial methods are, on the whole, requiring more time and commitment from management? Most people know that by closing the door and ‘hiding’ in their offices – as stated by McKinsey – a director only reflects uncertainty and mistrust from management, and that the lack of interaction can create a gap in the engagement of employees.

“One-on-one meetings between staff and leaders are hugely motivational,”(reported McKinsey) by a human resource director as they essentially allow the employee to feel valued. Other effective nonfinancial motivators

lEGAl INSIGHT

by Garrett Grennan and Ben Moylan

QAtArI WIthhOLDING tAX dO NOT BURy yOUR hEad IN ThE SaNd

atar Law No. 21 of 2009 (the New Tax Law) has now been in force for just over two years. One of the key concerns of businesses

operating in Qatar is the application of withholding tax under the New Tax Law. With failure to deduct withholding tax attracting potential financial penalties of 100 percent of the tax payable, businesses are justifiably concerned. Through the publication of tax circulars and responses to frequently asked questions, the Qatar Tax Authority has been proactive in providing its interpretation of the application of withholding tax under the New Tax Law.

WITHHOLDING TAx AT A GLANCEIn general, Qatar withholding tax is

applicable to certain types of payments to non-resident individuals and companies without a permanent establishment in Qatar.

A non-resident individual or company is considered to have a permanent establishment in Qatar only where it carries on an activity from a fixed location (such as an office, construction site, installation project, etcetera). In practice, the performance of a contract or activity in Qatar for less than six months would tend not to create a permanent establishment for the non-resident company. In addition, Qatar has entered into a number of double tax agreements, which give further guidance on the creation of a permanent establishment.

A company is non-resident for Qatar tax purposes where it is either incorporated in a foreign country or is a Qatar-incorporated company but is either headquartered, or its business activities are managed and controlled, in a different country.

An individual is non-resident for Qatar tax purposes where he/she does not satisfy any of the following conditions:• has a permanent home in the State of Qatar • has been in the State of Qatar for more

than 183 days in any 12 month period• has their centre of vital interest in the State

of Qatar In general, the following factors determine

the applicability of withholding tax in Qatar:• Was the income derived from a Qatar

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source? Withholding tax applies to income from a Qatar source only.

• Is a Qatar taxpayer making a payment to a non-resident without a permanent establishment in Qatar? Withholding tax should only apply on payments to non-residents without a permanent establishment in Qatar.

• Was the service / work done in Qatar? Withholding tax generally applies only to cases where the service provided or work done was in Qatar.

• What was the nature of payment? Only specific types of payments attract withholding tax.

APPLICATION OF WITHHOLDING TAx ON PAYMENTS TO NON-RESIDENT COMPANIES WITHOUT A PERMANENT ESTABLISHMENT IN QATAR

The New Tax Law provides for two rates of withholding tax:• Five percent on royalties and technical fees • Seven percent on interest payments,

directors’ fees, brokerage fees, commissions and ‘other payments’ in relation to contracts for services conducted wholly or partially in Qatar common types of payments to non-resident companies without a permanent establishment in Qatar, which are subject to withholding tax include:

• Interest payments on intergroup borrowings• Royalties, including payments for exploiting

commercial, scientific, technical or industrial knowledge for business activities

• Provision of technical services, such as installing equipment, technical support, training, consultancy and other works that take place in Qatar.Companies or permanent establishments in

Qatar that make payments as described above must deduct tax at source and remit it to the Qatar tax authority by the 15th of the month following the month in which the payment was made.

Qatar entities should also be aware that withholding tax will apply to a service provider that provides services in Qatar and is unable to produce a tax card and commercial registration issued by the authorities in Qatar.

WITHHOLDING TAx PITFALLSWhile the new regime may appear

straightforward, there are certain pitfalls to be considered, some of which we have highlighted below.

TREATMENT OF CONTRACTS INCLUDING SUPPLIES AND INSTALLATION

If we consider a Qatar company entering into a contract for the acquisition and installation of a piece of equipment in Qatar from a German manufacturer, should withholding tax attach to the payments from Qatar to Germany?

The relevant taxable income is income generated from activities performed in Qatar. Consequently, payments for the supply of the equipment should not be taxable, while payments for the installation of equipment will be subject to withholding tax. If the contract includes a lump sum amount without a breakdown for supplies and services, there is a risk that the total contract value may be subject to withholding tax.

TREATMENT OF SERVICE CONTRACTS REQUIRING ONSHORE AND OFFSHORE ACTIVITIES

Where a service contract requires the performance of services inside (“onshore”) and outside (“offshore”) Qatar, the service fees for both the onshore and offshore portion would generally be subject to withholding tax unless the service contract clearly reflects that the onshore portion belongs to a different and separate phase of the project than the offshore portion, and a separate fee is allocated to such onshore portion. In such case, withholding tax should only be operated on payments for the onshore portion of the contract.

PAYMENTS TO COMPANIES OWNED 100 PERCENT BY GCC NATIONALS

In many instances it has been wrongly assumed that payments to companies resident in another Gulf Cooperation Council (GCC) member state (for example UAE) and owned 100 percent by GCC nationals (for example UAE nationals) for services rendered in Qatar are exempt from Qatar withholding tax.

However, entities looking to avail of these reduced withholding tax rates should proceed with caution as companies or permanent establishments in Qatar must continue to operate withholding tax at the full rate dictated under the New Tax Law unless prior approval is received from the Qatar Tax Authority to use the reduced rate.

It is therefore in the interest of entities in receipt of significant sums liable to withholding tax to make an application for the reduced withholding tax rate (as defined under the terms of the tax treaty) to apply before the income begins to be paid. Furthermore, as such an application can take up to a few months to be approved by the Qatar tax authority, an early application is strongly recommended.

In the event that no prior approval to use a reduced rate has been received, then where the full domestic withholding tax rate is applied, any overseas entities that are able to prove that they can benefit from a reduced rate under a double taxation treaty may apply directly to the Qatar Tax Authority for repayment.

The implementation of the withholding tax regime in Qatar provides the Qatar Tax Authority with an extremely effective and efficient tool for collection of taxes. The payer in effect acts as an agent of the Qatar Tax Authority to ensure taxes are collected. The Qatar Tax Authority has issued clear and concise guidance on when withholding taxes need to be applied and accordingly has encouraged tax compliance, stronger tax administration and a means to counteract tax avoidance.

Note: All Qatari Laws (save for those issued by the Qatar Financial Centre (QFC) to regulate its own business) are issued in Arabic and there are no official translations, therefore for the purposes of drafting this article we have used our own translation and interpreted the same in the context of Qatari regulation and current market practice. This article should be used for information purposes only. It is not legal advice and should not be relied upon as such. If any reader requires legal advice, this should be obtained from an experienced

lawyer, who can provide advice, which is tailored to the relevant facts and circumstances. For any information in respect of legal issues, please contact Garrett Grennan ([email protected]) and Ben Moylan ([email protected]).

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lEGAl INSIGHT

In general, such payments are subject to withholding tax on the assumption that the GCC shareholders are not tax resident in the State of Qatar.

ROYALTIESThe definition of royalty under the New

Tax Law is extremely broad, and unawary taxpayers can be caught out by business transactions involving payments that do not appear to take on the characteristics of a royalty payment, but which may in fact constitute a royalty for tax purposes. In particular, royalties can include payments made under leasing agreements for the right to use industrial, commercial or scientific equipment, which will, as such, be liable to withholding tax at five percent.

INTERESTThe imposition of withholding tax on

payments of interest was one of the more controversial aspects of the New Tax Law, particularly within the banking industry.

A common related party transaction is a payment of interest (for example on intercompany loans). The New Tax Law imposes an obligation on Qatar taxpayers to withhold tax at seven percent on interest payments to certain non-Qatari residents.

The Executive Regulations to the New Tax Law have clarified that interest paid to banks is not subject to withholding tax. There are very few exclusions from withholding tax outside of the banking industry, but one exemption of note is that a payment of interest by a Qatari permanent establishment to its head office is not liable to withholding tax.

Many Qatar companies are unaware that interest payments by a Qatar tax resident company to a related party that is not resident in Qatar for tax purposes may be subject to withholding tax at seven percent.

DOUBLE TAxATION AGREEMENTSDouble taxation agreements often

provide for reductions in withholding tax rates between treaty countries and the continuing efforts by the Qatar tax authority to expand Qatar’s tax treaty network is laudable.


CITySCaPE QaTaR dEBUTS may 23 TO 25 (P.70)Cityscape Qatar will debut in late May as the latest addition to Cityscape’s portfolio of events. Rohan Marwaha, managing director of Cityscape, speaks to TheEDGE about what the exhibition will offer and why now is the ideal time to premier in Doha.

• yahoo! privacy expert discusses cyber safety: At the Doha IT event Qitcom in March, TheEDGE spoke exclusively to Yahoo!’s Justin Weiss, who was at the event as part of a Family Online Safety Institute (FOSI) panel

discussion regarding protecting international privacy online, particularly that of minors, which is fast becoming a serious issue worldwide as well as in the Gulf Cooperation Council. (P.72)

BUSINESS INSIGHTinSide the MindS OF leAdinG BuSineSS FiGureS

unparalleled investment opportunities in both mature and emerging markets.

Cityscape was first launched in 2002 at the Emirates Towers Hotel in Dubai with a small 500 square metre exhibition and about 1000 participants. The focus of the event in the first year was predominantly commercial architecture, but we were quick to realise in 2003, when the freehold market was beginning to open up in Dubai, that participation of the developers was critical to our long-term success.

The event underwent phenomenal growth for the next six years to become, in 2008, the world’s largest real estate event, with over 70,000 investors and senior real estate professionals in attendance from 160 countries. This success was of course encouraged by a very buoyant Gulf real estate market backed by strong liquidity and an ability to execute projects quickly.

International expansion for the Cityscape brand began in 2007 with multiple launches into new emerging markets such as Asia, Latin America, and other territories across the Middle East North Africa (MENA) region. In addition, over the last few years, Cityscape has built an online community platform called www.CityscapeConnect.com for real estate professionals worldwide, and produces the leading publication for real estate in emerging markets – The Cityscape Magazine.

There have been significant changes to the economic climate over recent years but this has not stopped our unwavering commitment to deliver real value and quality products to the real estate industry. Transferring Knowledge, Creating Transparency, Learning, Rewarding Excellence, Networking, and Sharing Best Practice are the objectives around which our organisation is built.

Please elaborate on the history of Cityscape. what lead to its birth? and how has it grown into what it has become today?Throughout the past decade, Cityscape has brought together international investors, developers, government and investment authorities, leading architects, designers, consultants and all senior professionals involved in the real estate industry. Cityscape events exist to enhance and support the vision for real estate growth worldwide to an international audience, highlighting iconic architecture, revolutionary developments and

Cityscape Qatar debuts in May 23 to 25, a crucial exhibition for the country’s National Vision 2030 Cityscape Qatar will debut in late May as the latest addition to Cityscape’s portfolio of events. Rohan Marwaha, managing director of Cityscape, speaks to TheEDGE about what the exhibition will offer and why now is the ideal time to premier in Doha.

Real Estate Exhibition

why did Cityscape decide to debut in Qatar in 2012? why is this year the right time? why didn’t Cityscape exist previously in doha?

Cityscape is proud to announce its entry into Qatar to be held in Doha between 23 – 25 May 2012. Cityscape Qatar will be the ultimate professional platform for Qatar’s real estate industry, combining a world-class exhibition and conference under one roof. Cityscape has gained a reputation throughout the region for providing high-quality networking and business opportunities for real estate professionals and we are delighted to be bringing our successful brand to Qatar’s dynamic, high-growth market.

We are honoured to have forged a partnership with Q Media to organise Cityscape Qatar. The event will capture the world’s media attention and put a spotlight on the real estate, construction and infrastructure sectors, which are critical to deliver Qatar’s National vision 2030.

With ample liquidity, thanks to expansive hydrocarbon resources, Qatar presents investment opportunities in a range of sectors, from real estate, energy, agriculture and industry to health, education, tourism and more. A stable economy, strategic geographic location, and capital surplus make Qatar an ideal destination for a Cityscape platform. Close to US$100 billion (QR364 billion) of projects are also in the pipeline, thanks to Qatar’s successful World Cup bid for the 2022 finals. To prepare itself for an event of this scale, Qatar will be investing heavily in infrastructure, transportation and telecommunications. Furthermore, to accommodate the influx of football enthusiasts, the country will need to provide at least another 80,000 additional hotel rooms. Qatar is lush with opportunities, and with liberal foreign investment

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I believe one of the biggest challenges for Qatar will be ensuring that its infrastructure can keep up with the speed of development. Attracting foreign companies and positioning the country as an ideal location for investment will also be key. Learning from the lessons of other Gulf Cooperation Council (GCC) markets to avoid similar issues of oversupply and sustainability are critical for the future of the country.

do you think Cityscape Qatar 2012 will be beneficial for the country?

Accurate intelligence is more important than ever during times of global financial uncertainty, and this year sees the publication of the Cityscape Magazine with a focus on Qatar report, a study which takes the pulse of US$100 billion (QR364 billion) worth of projects in Qatar in the commercial, hospitality, residential and retail sectors. Sentiment is also an important driver of real estate market activity and pricing, and there is no better place to gauge this than at a Cityscape event. Other benefits to the country include:• Positioning Qatar as one of the leading

regional and international destinations for investment

• Economic benefit of international visitors coming to Doha for the event will be significant in terms of flights, accommodation, and expenses, etcetera

• Supporting Qatar’s long-term development plans

• Showcasing Qatar’s significant progress towards Qatar 2022 World Cup to the world’s media on an annual basis

• Highlighting Qatar’s environmentally friendly and sustainable real estate initiatives

• Further establishing Doha’s position as a leading world city

• Uniting notable dignitaries and vIPs from around the region and the world to congregate and discuss important issues

• Creating a platform to tackle the strategic real estate challenges within Qatar

• Creating further transparency within the Qatar real estate market

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BUSINESSINSIGHT

“The Cityscape Qatar exhibition will showcase the country’s developments to key investors and real estate professionals from around the world.”

regulations, is a natural choice for anyone’s investment portfolio.

Qatar has weathered the downturn better than other economies around the world, as most of its revenues are from liquefied natural gas, which is still in high demand. The government is focused on the real estate and construction sector, which is expected to continue playing a major role in the local economy. The introduction of ambitious infrastructure projects has illustrated the government support of the significant developments taking place.

The real estate industry is of strategic importance in Qatar’s national initiative, part of its national 2030 vision to develop a vibrant and diverse economy in what has become one of the world’s wealthiest countries in terms of per capita gross domestic product (GDP).

what will the exhibition have to offer and why should people visit? what can the visitors expect from the exhibition?

The Cityscape Qatar exhibition will showcase the country’s developments to key investors and real estate professionals from around the world. In addition, there will be several international developers looking to promote their projects and services to Qatari and other Middle Eastern investors.

The event will bring together regional and international investors, architects and designers; real estate developers, governmental authorities and senior executives involved in the design and construction of public and private real estate developments. Cityscape Qatar, a power-networking exhibition and conference, will be complemented by unparalleled content-rich forums and will serve as a platform to bring further transparency to this growing market and introduce its projects to an international audience.

Cityscape Qatar is more than just an event, it is the definitive platform to meet, interact and network with decision makers that are as serious about their growth plans.

Can you explain the Cityscape awards Qatar 2012? how will the winner benefit further from the award?

The Cityscape Awards for Real Estate in Qatar will reward excellence in real estate development, investment and architecture in Qatar. The awards will recognise outstanding performance in key areas of the real estate industry and are judged by an eminent panel of real estate industry experts. Winners will be rewarded at an Awards Ceremony on May 23, 2012, attended by senior executives and personalities from the real estate industry, as

well as several high profile guests.All entries will be judged on contribution

to world architecture, culture, invention and imagination, respect for people, the planet, context: environmental awareness and appropriateness in Qatar.

In some categories, entries will be separated into Built Projects (those already complete) and Future Projects (those incomplete or still on the drawing board). A comprehensive nomination and judging process will operate for the Awards. Once nominations have been received a panel of internationally acclaimed judges will evaluate each entry. The Cityscape awards for Real Estate in Qatar is an excellent platform for companies to share their achievements and vision for the future. These Awards join a series of Cityscape Awards, which are held throughout the year with winners being universally recognised as industry leaders for their projects. Winners and short-listed candidates will receive high profile international recognition and the opportunity to showcase their work. Ultimately, winning an award will set a company apart from their competition and inspire their peers and fellow professionals in the industry.

what is the current status of the real estate sector in the Gulf Cooperation Council?

Recent years have been a rollercoaster ride for the real estate investment community globally. Many felt the region would defy global trends and somehow pull through unscathed. That did not prove to be the case, though parts of the region such as Qatar and Saudi Arabia are proving more resilient than others in the downturn.

There is little doubt the United Arab Emirates (UAE) has been the hardest hit in the region. Nevertheless this market is now also finally seeing some green shoots of recovery and there is every reason to remain confident in the future. But investors and developers are, not unnaturally, more cautious given what has unfolded in world markets. As a result a distinct element of realism has entered the investment landscape.

what are some obstacles you believe Qatar may face in the real estate sector?

what areas is yahoo! focused on in the middle East? The products that we offer are website-based products, localised actually for regional audiences – so it is not a translation of the United States website. For Qatari residents, particularly those that are Arabic speaking, the principle product that we talk about is Yahoo! Maktoob, which is a Yahoo! product. Maktoob is mainly Arabic content. It is also offered in English, but it is designed for the region, and principally you think about e-mail and messenger services but also sports and news content. It is also growing to be one of the largest Arabic language portals in the region.

In the context of FISO, but also of the general privacy levels of website, social and e-commerce, where does security of information fit in?

It is about making sure you are able to build user trust. Privacy is a big aspect of user trust online, so what we try to do to is facilitate trust with our services. First of all, we take the approach that businesses like ours need to be transparent with our users about what information from them we collect and how we are going to use it. You see privacy policies

YAHOO! Privacy expert discusses steps being taken to educate adults and minors in protecting their data onlineEarlier this year United States Internet service provider yahoo! and Qatari information technology regulatory authority ictQatar announced a partnership aimed at the promotion of Arabic digital content in the country. At the Doha IT event Qitcom in March, TheEDGE spoke exclusively to yahoo!’s Justin Weiss, who was at the event as part of a FOSI (Family Online Safety Institute) panel discussion regarding protecting international privacy online, particularly minors, which is on the rise worldwide as well as in the GCC.

Cyber Safety

as one example of that, but I think it goes beyond that. Privacy professionals today focus on delivering messages inside the product experience itself, so when you are on a login page and you are creating information, does the company tell you what it is going to do with it, what kind of promises are made? This goes across the spectrum for sites and services. The other area that I think that is a big focus on trust for Internet companies like ours is the issue of safety, security and also youth. We are in a region here where there is a significant percentage of the population that are aged under twenty, which is different compared to the other global markets. So I think particularly with the Maktoob project, what I will share with you is that having to create an experience and an approach that helps educate younger users becomes even more important.

how is this achieved?The project that we designed to do

that, in the region, is called Yahoo! Oasis and is available at esafe.yahoo.com. It is an interactive educational experience that takes the target age group, which is ages 7 to 13, and tries to educate them in a fun way through a game. The idea is that you choose a character,

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features built into it. Another interesting privacy feature is called Geofences. For example this is basically when you upload a photo from a mobile device, which people are using a lot to upload photos online, a location can be communicated with that photo, and in some services you have this sort of default where it says this photo was taken in Doha on this date. Geofences is an approach that you can use, for example if you are concerned about people identifying a location that you want to keep private like your house or your school or something like that, you can create an imaginary circle around that space and that data won’t be made visible.

So it is very much like customising your own privacy? Exactly.

where does local or even international legislation fit in?

From a privacy perspective, one of the things that many countries are considering at this stage is whether or not they should have some sort of comprehensively privacy legislation as a base line that articulates trade, particularly with the European countries, and I know that the [Qatari] government is looking at that. Take a holistic look at how all of the markets around the world have approached that question and I think you will see that there is a lot of diversity other than just the European approach, and in fact the most innovation and business development has probably come, at least in the technology sector, out of the regions like the United States that don’t have a necessarily European style framework. But there may be some common principles for the Internet that multiple cultures and countries can agree on so when we look at Qatari regulatory thinking, keeping that open and in many cases self-regulatory, as we talked about earlier, institutional structure can really incentivise businesses in stepping up and helping write rules that actually work for this technology. As supposed to having individuals that maybe don’t work with those technologies on a day-to-day basis and try to borrow from other cultures.

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BUSINESSINSIGHT

“Privacy is a big aspect of user trust online, so what we try to do to is facilitate trust with our services. ’Privacy by design’ encourages companies like ours to design privacy and safety messages into features.”

and as if you are involved in an immersive game, you are taken through a series of lessons, where you have an opportunity to make a good choice against a bad choice with respect to the information you share online, who you share a photo with, making contacts or using e-mail safely. These sort of basic digital literacy tools are available in Arabic for a younger audience. I think that this is an exciting innovation that fits within that big trust umbrella.

why do you think establishing this kind of trust is important?

Is it safe for me to go online? What is going to happen if I give them my name, or my address, or my contact information, or my e-mail address or credit card information? You don’t have to register or login to see news articles, but you do have to create an account to do things like have an e-mail account, use instant messaging services, certainly anything that provides financial transactions. You have to log on and give us some personal information so that we can create a record for you and help users understand how to manage that information, control it, and understand that we don’t share their personal information with third parties without their permission. You start to develop those Internet skills among the user base that they can rely on and also helps them over time evaluate other companies, so they get used to a certain experience and a certain level of control, and you start to see Internet standards evolve and emerge. I think governments around the world have [also] started to talk and think about how to build trust online as a general premise that will be good for business but also good for citizens. This happens in a variety of ways, there can be government incentives and programmes to educate people about how to engage safely online.

how do you evaluate success rates of these programmes?

One of the ways that we hope that success can be measured is by an increase in traffic and visitation to the site. But at the same time, one of the other measures of its success that I think is really important, and specifically in Qatar is finding other offline partnerships that can help contribute to that level of education. I know with the Yahoo! Oasis product for example, we had a pilot project in Qatari schools so that the education system was actually using some of the resources to help train in the school context, which is very different to measuring

click through rates on the Internet. It is more – can you have a qualitative impact through sort of partnerships with Qatari government, partnerships with the school system and perhaps starting to introduce curriculum and start to build digital literacy which has an aggregate positive impact for all business, not just ours.

are there issues with pornography, and cyber stalking, cyber bullying and young people being too free with their personal information online?

I think one of the interesting new and innovative approaches, beyond just using privacy policies, is a concept called ‘privacy by design’. It is a kind of a global movement now in the privacy sphere, but what ‘privacy by design’ tells us is that beyond just a legal statement or beyond just a term of service or a privacy policy, if you can find ways to imbed safety and privacy messaging into the experience itself. So if someone is about to take an act that has a privacy impact, why don’t we tell people right there what is going to be done with that information? For example if you are posting a photo online, at the time you post the photo let’s give people information about who can see this and whether it is public or private etcetera, as opposed to signing up to a service with some terms of service that says fair warning, all of this is going to be made public, whatever it may be. ‘Privacy by design’ is to encourage companies like ours to design privacy and safety message into features of the product as you go, so we hope that it is an important stepping map, and you will see it in our e-mail experience. You will see that in Flickr, you’ll see that in social sharing, as kind of a technique that privacy professionals are using increasingly, and some governments are calling on companies to do this as a requirement.

Is photo sharing a good example?Flickr is a Yahoo! product, and I think that that

is an interesting example of a kind of social media experience that has a lot of interesting privacy

Final vispromadcsqatar_ENG_THE EDGE 21x27cm NEW.pdf 1 4/22/12 5:17 PM


TRAVEL & LIFESTYLE

SINGaPORE BUSINESS TRaVEl INSIdER (P.76)victoria Scott gives us an insight to one of the world’s richest countries in Southeast Asia, a small country island with a great deal to offer.

• a guide to doha: Now that summer is approaching and the weather is becoming ideal for outdoor activities. TheEDGE takes a look at Qatar’s Sealine Resort (P.77)

• Read It: Our Iceberg is Melting, a business book written in a simplified language and bestseller, is reviewed by TheEDGE. Here is why it is a must-read (P.78)

TRAVEl

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GETTInG ThErE:Qatar Airways (www.qatarairways.com) flies direct to Singapore’s Changi airport twice daily. An economy return fare costs QR3440 in May, and Business Class QR9580. The flight time is around eight hours.

Most nationalities can enter Singapore without a visa, but check with the Immigration and Checkpoints Authority, www.ica.gov.sg, before you travel.

Travelling around on public transport is easy. Invest in an EZ-Link card, a smartcard which gives you access to the city’s immaculate MRT train system.

Currency: Singapore dollar. SGD 1 = QR2.9 (exchange rate as of March 2012)

WhErE TO STAY:Raffles (www.raffles.com) Even people

who have never been to Singapore have heard of Raffles, named after Singapore’s founder Sir Stamford Raffles and open since 1887. Although it has changed a great deal since then, its high standards of service and luxury have not. A standard room is SGD900 (QR2610) per night excluding breakfast in mid-May.

Fullerton Hotel (www.fullertonhotel.com) Once home to the General Post Office and the Chamber of Commerce, The Fullerton is a luxury hotel that aims to provide both business and leisure travellers serenity in the heart of the city. If you do not have time to explore the city to shop, the hotel also has a retail wing, housing two jewellers and a contemporary Asian art gallery. A standard room costs upwards of SGD430 (QR1247) a night in May, room only.

Mandarin Oriental (www.mandarinoriental.com/singapore/) Located

Business travel Insider: SINGaPOREA small country on a small island, Singapore nevertheless packs a considerable punch. One of the world’s richest cities, it is not all urban jungle – more than 50 percent of the island is given over to green spaces. Victoria Scott shares her tips on Southeast Asia’s garden city.

at the Marina Bay development (www.marina-bay.sg) the hotel has Singapore’s central business district at its doorstep. Its rooms have plenty of workspace, and with lovely views over the harbour; you will not be stuck for inspiration. A standard room costs from SGD479 (QR1389) in May; room only, SGD509 (QR1476) including breakfast.

WhErE TO PlAY:Keyaki (www.panpacific.com) Located in

the Pan Pacific hotel, this upscale Japanese restaurant is set in the hotel’s rooftop Japanese garden. Famed for its Kaiseki, Teppanyaki, Sushi and Sashimi, it’s open for

lunch from 12 noon to 2.30pm and dinner from 6.30pm to 9.30pm.

At Singapore Zoo (www.zoo.com.sg) you can get up close with some of the world’s rarest animals, all of which are kept in environments that mimic their home habitat as closely as possible. There is a huge range of exciting things to see and do, but we rather like ‘Lunch with Lions’, where you get to feast next to the king of beasts.

SPlASh YOur CASh: Singapore is fabulous for shopping. Low

import taxes make prices very competitive.For luxury brands, head to ION on

Orchard Road. Eight floors offer all the glitz and glamour you could ever need, with Louis Vuitton, Prada, Dior, and Dolce & Gabbana all selling their wares here.

If you are looking for cheap electronics, a good place to start is Mustafa Shopping Center in Little India. This enormous store has a very good electronics floor (and sells just about everything else you will ever need, too.)

CulTurE vulTurE:Marina Bay, a huge development at the

southern tip of Singapore, is home to the Esplanade theatres (www.esplanade.com). This impressive centre’s performance spaces can handle events for as few as 10 or up to 2,000 people. The Singapore Symphony Orchestra often plays in the concert hall here.

InSIDEr TOP TIP: Seek out the Makan Deals card (www.

makandeals.com). Register on the website for free, and access vouchers worth up to 50 percent off meals at many of Singapore’s best restaurants.

A standard room costs from QR850 a day including breakfast. Villas start at QR2750 for a weekday and QR3200 at weekends. Day entry costs QR50 per adult weekdays,QR75 at weekends. www.merweb.com

To fly to Penang from Doha, you can travel with Qatar Airways to Kuala Lumpur and then connect to a Malaysia Airlines flight to Penang. Total travel time is around 11 hours, and costs from QR3600 in economy in mid-May, booked through Qatar Airways (www.qatarairways.com).

lIfESTYlElIfESTYlE

TheEDGE

GUIdE to doha - Sealine Resort, Qatar

TheEdGE Getaway: Shangri - La’s rasa Sayang resort and Spa, Penang, Malaysia

77

Sometimes the daily grind of life in Doha can get too much. The traffic drives you bonkers, the working hours tire you out and your view, is, well, a bit dusty, to be honest. But if you have not got any annual leave owing, what options do you have? TheEDGE visits Sealine for a breather.

Sealine Resort is just an hour’s drive from Doha, but it feels like you are in a different world. Surrounded by sand dunes, it is a peaceful oasis of manicured lawns, swaying palms trees and turquoise blue swimming pools. Its beach is cleaned regularly and there is a safe swimming area equipped with fun inflatable trampolines, perfect for exhausting the kids. Jet skis and banana boats are also available for hire, and you can also hitch a ride on a camel if you are so inclined. The hotel’s poolside café offers delicious pizzas cooked to order (and delivered directly to your sun lounger) or the hotel’s restaurant is available for a more refined feast if you prefer. There is also a spa offering massages to the hotel’s female guests.

Exotic and luxurious, the Rasa Sayang Resort and Spa is an ideal retreat for those seeking a tropical break surrounded by Malaysia’s culture and beautiful scenery. The resort is situated on the popular Batu Ferringi beach on the island of Penang, and is just 20 minutes from the island’s capital, George Town, which is a UNESCO world heritage site.

Visitors can choose from rooms in the 189-room Garden Wing or in the new, exclusive Rasa Wing. Guests in the new wing enjoy additional privileges that include their own swimming pool, complimentary high tea, snacks and pre-dinner drinks at the Rasa Wing Lounge. And if you feel like splashing out further, the wing’s best rooms even have private gardens and hot tubs. All of the hotel’s rooms have free Wi-fi.

The resort’s spa, Chi, is housed in 11 private spa villas under centuries-old rain trees, facing the ocean. There is also a yoga pavilion with a resident yoga master, in a location so lovely even we might be tempted to pack our gym kit.

A Garden Wing Superior Sea facing Family Room costs from MYR 940 (QR1110) per night in mid-May, including breakfast.

TheEDGE78

lIfESTYlE

At first glance between the covers, this book, with its cartoony drawings of penguins on the cover and large type, written in simplistic language, is out of place in the serious business book section of Virgin Megastore. But as Spencer Johnson, author of Who Moved My Cheese? writes in his foreword, “that is just the tip of the proverbial iceberg”. Turns out that Iceberg author, John Kotter is one of the most respected experts in organisational change in the world and this book is one of the best-selling of its kind in this genre. Though on the surface it does indeed read like a kindergarten book or fable, the underlying lessons in this book are vitally important for business owners looking to manage change in a rapidly evolving world. For those of a more serious bent the book also ends with ‘The Eight Step Process of Successful Change’ summarised in typical succinct fashion. But reading just these is not as fun or informative as the whole book, where the story of a bunch of penguins facing various challenges on an iceberg truly brings them to life.

Awailable at Virgen Megastore for QR72.00.

Sony recently launched the world’s first digital binoculars with HD video recording. Ideal for watching and capturing wildlife and sporting action in steady, sharply-focused close-ups, Sony’s new pair of binoculars has a 3D record mode, with maximum magnification of 5.4x that captures the scene as a thrilling stereoscopic video footage. Variable zoom allows users to scan a wide area at low magnification before zooming in seamlessly to pinpoint the distant subject. The unit features a high-capacity rechargeable battery pack (NP-FV70) that permits up to approximately three hours of 2D recording on a single charge. A definite must-have gadget.

Darwish Technology, the technological arm of Darwish Holding and Fifty One East, Qatar leading’s luxury store, claimed two exceptional awards at the prestigious annual Yamaha Distributors’ Gala dinner held recently during the Musik Messe show in Frankfurt, Germany.

Darwish Technology collected the trophies for ‘Best Sales Growth’ and the ‘Best Marketing Achievement’ for the Fiscal Year 2011-2012 in the Middle East and Africa (MENA) region.

daRwISh tEChNOLOGy AND FIFty ONE EASt COLLECt yAMAhA AWArDS

SONy launches Digital Binoculars - DEv-5

REad IT: Our ICEBErG IS MELtING

It’s Berrylicious! time at

PAUlEnjoy the latest creations from the PAUL pastry team during the months of May and June at your favourite bakery and restaurant, PAUL. Explore the delights of fresh berry fruits during the Berrylicious! months and enjoy exquisite treats such as the meringue aux fruits rouges and the gâteaux aux fruits rouges. Following the successful launch of their small verrines last year (that is small dessert pots to the non-French speakers among us…) there will be three new, exciting varieties available: Mousse aux fromage ricotta et fraises, parfait aux fraises et pistaches and mousse aux fruits rouges. For those who can be strict enough with themselves and want to stay on the healthy side, there will also be a special fresh berry salad available, bursting with goodness. Berrylicious! will run from 1st May to 30th June at all PAUL restaurants.

10TEN THINGS

TheEDGE80

Social media and peripheral tools are exploding everywhere. Here are a few that businesses might find useful.

new SociAl MediA toolS for BUSINESSES

InSTAGrAmRecently purchased by Facebook for a whopping US$1 billion (QR3.64 billion), this photographic-based phone app (application) with a strong social aspect is set to become the world’s number one app. Initially available on iPhone only, but now on Android and Google Play it is being used by brands as diverse as Starbucks, CNN, Jamie Oliver and Red Bull to market themselves.

PInTErESTAn electronic pinboard, users can post

images, videos and other items to their Pinterest web page. Like most social media there is ‘follow’ component and on Pinterest users can ‘repin’ posts to their own page from those of others. Initially adopted early by young females, brands – especially retailers – are now starting to utilise this social media tool to interact with customers.

vOXErThis is a relatively new iPhone and

Android app that turns your phone into a walkie talkie. It is being touted as having a value for businesses as a cost-effective way of communicating with staff. You can also create groups, post items online and link it to other social media such as Facebook or Twitter.

GOOGlE+This has also been out since late 2011, but

according to online sources companies still seem slow on the uptake to adopt this as part of their social media strategy. However, with a business page feature and access to more than 90 million users it might be a wise decision to investigate Google+, which is pushing hard to become the go-to online networking portal.

TImElY.ISEssentially this a Twitter-compatible tool

that allows you to micromanage and automate

your Tweets across multiple accounts. Timely analyses your Twitter history and recommends the best times of day for you to Tweet based on this. You can preload your Tweets and set them to specific times, avoiding the need to constantly return to Twitter to do so in a busy day, or even when you are not at the office at all.

ArGYlE SOCIAlTaking Timely’s approach to an

exponential degree, Argyle Social provides software that parses a company’s social media networks and analyses its agenda and needs, providing a tailored strategy to as it says, “integrate participation in conversations with prospects and customers, drive brand awareness, and integrate social media deeply throughout your organisation.”

KICKSTArTErThough not strictly a social media platform,

this web-based initiative, where crowdsourcing meets venture capital, has a highly connective component. Every week, tens of thousands of people pledge millions of dollars to projects from the worlds of music, film, art, technology, design, food, publishing and other creative fields. It is worth a look.

IF ThIS ThEn ThAT (IFTTT)Ifttt is an online social media filter that

aggregates all your social media activity. By loading preset, creating or customising what they call ‘tasks’ and ‘triggers’ individuals or companies can regulate work flow, alerts and messaging across a multitudes of platforms. As social media platforms continue to proliferate Ifttt could become an indispensable tool in information management.

KlOuTFor the serious social media aficionado

there is Klout, an online influence-measuring tool that does just that: measures the

effectiveness of whatever digital networking strategy you have set in place. Filtering out clutter, Klout focus on who acts on your content and how they do so, ultimately determining the true reach of your activity, and helping to determine how you can improve on it. For a price, of course.

COmmOnrEDPresenting itself as a cooler version of

LinkedIn, particularly for tech and other entrepreneurs and start ups, CommonRed, as its name suggests is a business network aimed at finding commonalities between users and even ultimately and uniquely among most social media, facilitating real life meetings between them.

the edge - may 2012 (issue 33)

Documents

new qatari tax law

personal tax requirements

business interview

economic sector

economic vein

economic barometerqatars

business management

cityscape qatar