IN FOCUS: Education vital to achieve QNV goals
SEPTEMBER 2019
ASSET MANAGEMENT IS SUNRISE INDUSTRY IN QATAR
KAHRAMAA MARCHING AHEAD VAT IN QATAR LIKELY FROM MID 2020 US-IRAN CONFLICT AND THE SHIPPING MARKETS
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inside this issue September 2019 / Vol. 45
20 VAT IN QATAR LIKELY FROM MID 2020
42 "WAR NOT AN OPTION"
32 AUM INDUSTRY POISED FOR GROWTH
48 EDUCATION VITAL TO ACHIEVE QNV GOALS
In 2017, the six GCC countries – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates – agreed on a VAT treaty (“VAT Framework”). By doing so, the GCC countries committed to implement VAT at a standard rate of 5%.
The Asset under Management (AuM) industry in Qatar is still in a nascent stage but is poised to grow in the coming years as the government is encouraging more investors including foreigners to derive maximum benefit from this untapped industry with large potential.
Almost 17 years ago, a group of neoconservative hawks in the US – among them John Bolton, US President Donald Trump’s current national security adviser – persuaded President George W. Bush to mount a quick invasion of Iraq bec ause, they alleged, it had “weapons of mass destruction” in its possession.
Recognising that education plays an important role in achieving the targets set in the Qatar National Vision 2030 for a progressive society, the government has been developing a knowledge-based economy to reduce its dependence on hydrocarbon revenues in the years to come.
1 > QATAR TODAY > SEPETMBER 2019
inside this issue September 2019 / Vol. 45
08 HMC’S NEW TRAUMA AND EMERGENCY CENTRE INAUGURATED WITH HIS HIGHNESS THE AMIR 09 QATAR TO DOUBLE INVESTMENTS IN US
10 QATAR INAUGURATES LARGEST COAST GUARD BASE 11 JORDAN, QATAR RESTORE DIPLOMATIC TIES
and regulars
2 > QATAR TODAY > SEPETMBER 2019
08
NEWS BITES
12
OIL & GAS REVIEW
14
REAL ESTATE
16
BANK NOTES
63
AUTO NEWS
65
MARKET WATCH
66
DOHA DIARY
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EVENTS DIRECTOR KHALID MOHANNA ACCOUNTANT SARFUDEEN SHAMSUDEEN PUBLIC RELATIONS OFFICER ESLAM ELMAHALAWY
DISTRIBUTION DEPARTMENT BASANTA POKHREL
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from the desk Ever since it was established in 2000, Qatar General Electricity and Water Corporation, popularly known as KAHRAMAA, has been playing a commendable role in the country’s march on the path of progress and has notched up many successes in the last two decades. Besides ensuring Qatar’s position as a power-surplus nation in the region, it has taken up many mega power and water projects to meet the demand for water supply to the country’s growing population.
Qatar Today features an exclusive report on KAHRAMAA’s activities, including interviews with senior officials who explain the company’s past achievements, describe how the country’s premier institution overcame the impact of the unjust and unfair blockade by some neighbouring countries, and set out its plans for the next five years. Our cover story reports on the prospects for Qatar’s budding asset management industry, with experts sharing their insights with Qatar Today about how local and international investors can take advantage of and benefit from government regulations. As students return to their respective schools and colleges to pursue their academic career, Qatar Today offers a special report highlighting Qatar’s efforts to make the country a knowledge-based economy. The results are everywhere to see as over half a dozen reputed international universities and other educational institutions have set up their campuses in the country to provide quality education to the children of Qataris and foreign workers. Two reports on the likely impact of the US-Iran tensions, another on the likely introduction of VAT from mid-2020, and our regular features are sure to capture the attention of Qatar Today’s subscribers. Happy Reading!
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Newsbites > Amir HMC’S NEW TRAUMA AND EMERGENCY CENTRE
INAUGURATED WITH HIS HIGHNESS THE AMIR THE INAUGURATION ENJOYED THE PRESENCE OF HE THE PRIME MINISTER AND INTERIOR MINISTER SHEIKH ABDULLAH BIN NASSER BIN KHALIFA AL-THANI, HE THE MINISTER OF PUBLIC HEALTH DR HANAN MOHAMED AL-KUWARI, OTHER DIGNITARIES AND A NUMBER OF SENIOR DOCTORS AND OFFICIALS AT HMC.
A
long with the opening of the Trauma and Emergency Centre at Hamad General Hospital (HGH), Hamad Medical Corporation also launched its Hyperbaric Therapy Unit which houses a cutting-edge hyperbaric oxygen therapy chamber. This
8 > QATAR TODAY > SEPETMBER 2019
first-of-its-kind hyperbaric oxygen therapy chamber in Qatar is capable of holding up to 18 people with a range of medical conditions as well as decompression treatment for diving accidents. Furthermore, the new centre marks a significant expansion of trauma and emergency services in Qatar. In
addition to a new Emergency Department, it also offers trauma, urgent, and critical care services, and features a dedicated ramp for ambulance arrivals at HGH.
QATAR TO
DOUBLE INVESTMENTS IN US
E
mphasising the close ties between Qatar and the US, The Amir, H H Sheikh Tamim bin Hamad Al Thani, said that Qatar will double its investments in America in the future. He was speaking at a bilateral meeting with US President Donald Trump at the White House on July 9. “Our economic partnership has been more than QR673.4 billion ($185 billion), and we
are planning to double this number. We have a lot of investments in the US and we trust the economy here. We do a lot in the infrastructure, and we are planning to do more investments,” the Amir said. The two leaders also discussed regional security in the Gulf region and their economic and military partnerships. A day before, at a dinner hosted by
Secretary of the Treasury Steven Mnuchin for the Amir and members of his delegation, the US President praised US-Qatar military-to-military strategic relations and cooperation. “I know everything is going to be very positive. You have been a great ally, and you have helped us with a magnificent military installation and military airport, the likes of which people haven’t seen in a long while,” he said.
QATAR OFFERS
C
ash-strapped Pakistan secured a bailout package of QR10.92 billion ($3 billion) from Qatar, after the Amir, HH Sheikh Tamim bin Hamad Al Thani, concluded his visit to Islamabad and agreed to cooperate in the fields of trade, anti-money laundering and curbing terror financing. Qatar’s financial assistance was announced
BAILOUT PACKAGE FOR PAKISTAN by its Foreign Minister HE Sheikh Mohammed bin Abdulrahman Al Thani. “Upon the directives of the Amir, the Deputy Prime Minister and Minister of Foreign Affairs announced new investments in the form of deposits and direct investments in the Islamic Republic of Pakistan,” the QNA tweeted, quoting the Minister. Qatar is the fourth country to rescue
Pakistan from default during the past 11 months. Earlier, China gave QR16.74 billion ($4.6 billion) in the form of deposits and commercial loans and Saudi Arabia provided QR10.92 billion ($3 billion) cash deposit and QR11.64 billion ($3.2 billion) oil facility on deferred payments. The United Arab Emirates also provided a QR7.28 billion ($2 billion) cash deposit. 9 > QATAR TODAY > SEPETMBER 2019
Newsbites > Local QATAR SAFEST COUNTRY IN MIDDLE EAST
Q
atar is ranked first as the safest country in the Middle East on the Global Peace Index (GPI) of 2019, prepared by the Institute for Economics and Peace (IEP), that lists the safest and most dangerous countries in the world. Qatar is followed by Kuwait (71), the UAE (81), Oman (97), Bahrain (152) and Saudi Arabia (157), respectively, in the GCC region. This is the thirteenth edition of GPI, which ranks 163 independent states and territories according to their level of peacefulness.
Produced by IEP, the GPI is the world’s leading measure of global peacefulness. This report presents the most comprehensive data-driven analysis to date on peace, its economic value, trends, and how to develop peaceful societies. The GPI covers 99.7 % of the world’s population, using 23 qualitative and quantitative indicators from highly respected sources, and measures the state of peace using three thematic domains: the level of Societal Safety and Security; the extent of Ongoing Domestic and International Conflict; and the degree of Militarisation.
QATAR INAUGURATES LARGEST COAST GUARD BASE
Q
atar inaugurated its largest coast guard base as a standoff between Iran and the United States continues to boost tensions in strategic Gulf waters. HE Prime Minister Abdullah bin Nasser bin Khalifa Al Thani and commander of US Naval Forces in the Middle East Vice Admiral Jim Malloy attended the ceremony at the Al Daayen naval base in Semaisima, 30 km from Doha on Qatar’s eastern coast. Vice Admiral Malloy, commander of the US Fifth Fleet based in Bahrain, said the new base was “a wonderful opportunity for the US to interface more strongly with the Qatari Coast Guard.”
The 640,000-plus sq m site aims to facilitate the securing of all territorial waters of the State and border posts. It includes a sophisticated seaport, training and medical facilities, civil defence offices and operating rooms. In increasing Qatar’s maritime capabilities, the base will also be a key element in
regional cooperation between Qatar and other Gulf Cooperation Council (GCC) nations, especially Oman and Kuwait, whose commanding naval and coast guard officers also attended the inauguration. The base will also assist in international efforts to maintain security in the Gulf, according to Qatari officials.
QATAR AMONG TOP 10 NATIONS IN ERADICATING HEPATITIS C
Q
atar has been listed by the World Health Organisation (WHO) as one of the top 10 countries in the world that is on track for the elimination of the Hepatitis C virus. The government has launched the National Qatar Strategy for Hepatitis Control 20182022, following the launch of a plan in December 2014, a collaboration between
10 > QATAR TODAY > SEPETMBER 2019
Hamad Medical Corporation and the Ministry of Public Health, and was brought under the supervision of WHO in January 2018. According to the Ministry of Public Health’s Strategy data, over 23,000 people in Qatar are living with viral Hepatitis B, of which 1,445 are currently receiving treatment in accordance with international guidelines and best practice,
and the others are receiving regular follow-up care. Around 4,200 have been diagnosed with viral Hepatitis C, with over 1,700 currently receiving treatment. According to WHO, the leading countries in the eradication of the Hepatitis C virus are Australia, Brazil, Germany, Iceland, Japan, The Netherlands, Qatar, Italy, Spain, Switzerland, UK, Mongolia and Iran.
JORDAN, QATAR RESTORE DIPLOMATIC TIES
J
ordan and Qatar announced the restoration of full diplomatic ties by naming their respective ambassadors, two years after Amman downgraded its relations with Doha due to pressure from a Saudi-led block. In June 2017, Jordan recalled its ambassador to Qatar siding with the regional axis of Saudi Arabia, the United Arab Emirates, Egypt and Bahrain, which imposed a land, sea, and air blockade of the gas-rich state. Qatar named Sheikh Saud bin Nasser Al Thani, a member of the royal family, as its ambassador to Jordan, according to Al Jazeera Arabic. In return, the Jordanian government named high-ranking diplomat Zaid Al Louzi as its ambassador to Qatar. Al Louzi, whose father was a member of Jordan’s parliament, is the second-highest official at the foreign ministry. Following an economic crisis and popular unrest in June 2018, Qatar rushed an economic aid package to Jordan worth QR1.82 billion ($500 million) and offered 10,000 jobs for Jordanian citizens to work in Qatar.
QATAR TO FUND INDUSTRIAL ZONE NEAR GAZA CITY
A
n industrial zone funded by Qatar is set to be established east of Gaza City, by the Karni crossing. The zone is projected to provide jobs to 5,000 Palestinian workers from the Gaza Strip.
According to a report, the project was discussed and approved during a security Cabinet meeting led by Israeli Prime Minister Benjamin Netanyahu and several high-ranking security officials in May. The industrial zone is based on the terms of the truce talks between Hamas and Israel, which have been mediated by Egypt, Qatar and the United Nations since October 2018. The Israeli and Qatari approval of the project was delayed because of respective bureaucracies. Now that the zone has been approved by Israel and guaranteed financing by Qatar, it is expected to start operations at any moment. Israel wants to absorb Hamas’ anger after the Israeli army killed one of its members in Gaza on July 12, with Hamas threatening retaliation.
OMAN TO DEVELOP GAS FIELDS IN NORTHEAST
O
man, the biggest Middle-Eastern oil producer outside OPEC, expects to discover and explore for more gas northeast of the sultanate in the area where the giant Mabrouk field is estimated to hold more than four trillion cubic feet of gas and 112 million barrels of condensate. Already, Total and Shell are conducting downstream and upstream projects in Mabrouk that could cost more than QR72.8 billion ($20 billion). Oman, which currently produces around 3 billion cubic feet of gas per day, is ramping up exploration and undertaking multibilliondollar projects to monetise gas from the field that was discovered in 2018. State-run Oman Oil Co., Total and Shell are partnering in the upstream development of Mabrouk while Shell and Total are separately working on a gas-to-liquids (GTL) plant to be developed by Shell and an LNG bunkering facility to be developed by Total. The sultanate is also developing its giant Khazzan gas field with the help of BP, which is expected to boost production from the current 1 billion cubic feet per day to 1.5 billion cubic feet per day by 2021. 11 > QATAR TODAY > SEPETMBER 2019
business > Oil&Gas
QP, CHEVRON PHILLIPS TO SET UP NEW PETROCHEM UNIT
C
hevron Phillips Chemical and Qatar Petroleum will jointly develop a new petrochemical plant in the Gulf Coast region of the United States. The US Gulf Coast II Petrochemical Project (USGC II) will include a 2,000 KTA ethylene cracker and two 1,000 KTA high-density polyethylene units. Â The signing ceremony, hosted at the White House and witnessed by US President Donald Trump and the Amir, HH Sheikh Tamim bin Hamad Al Thani, was attended by senior officials from both companies. While Chevron Phillips Chemical will own a 51% share, the remaining 49% of the project will be owned by Qatar Petroleum. The preliminary cost of USGC II is approximately $8 billion and both companies expect a final investment decision (FID) no later than 2021, followed by full funding and the award of engineering, procurement and construction (EPC) contracts, with a planned start-up of the new facility in 2024.
A
ccording to a new report from Global Energy Monitor (GEM), over $1.3 trillion is being invested in over 200 LNG terminal projects around the world.
GEM counts 202 LNG terminal projects currently in development, including 116 export terminals and 86 import terminals worldwide. It estimates that these new terminals will triple global LNG export capacity once completed. Leading the new LNG boom is the United States which is spending more on LNG development than any other nation in the world. GEM reports that over $500 billion of the money being spent on LNG projects is being invested in the US. (Canada is a close second, with $410 billion being invested into LNG.)
QATAR HIKES FUEL PRICES
T
he price of petrol and diesel in Qatar has been increased by 5 to 15 dirhams from August 1, according to the Qatar Petroleum (QP) website. The price list on QP's website showed that premium grade petrol will cost QR1.80 in August, 10 dirhams more than in July. Super will be available for QR1.90, as against QR1.75 and diesel will cost QR1.90, 5 dirhams more than the July price. QP had reduced the price of petrol and diesel in July. Super and premium prices saw a big drop of 25 dirhams in July. QP had kept the petrol prices unchanged in June, increased in May by 15 dirhams, in April by 25 dirhams and in March by 5 dirhams, while it was not changed in February. January saw a significant drop in prices as premium and super grade petrol were cheaper by 30 dirhams. In April 2016, the Ministry of Energy and Industry had started pegging the fuel prices to the international market and from September 2017, Qatar Petroleum began announcing the monthly price list.
12 > QATAR TODAY > SEPETMBER 2019
Natural gas Crude oil Coal (colsing) Coal Anthaeite) Coal (Bituminous) Coal Lignite)
Sources: International Eenergy Agency and QNB analysis
LNG FASTEST-GROWING SECTOR IN THE ENERGY INDUSTRY
CO2 Emissions of Electricity Production by Fuel (Kg of CO2 per kWh)
QP ACQUIRES THREE OFFSHORE BLOCKS IN KENYA
Q
atar Petroleum has acquired a part of Kenya’s offshore oil and gas exploration fields, adding to a growing list of global corporations seeking to exploit huge fuel deposits believed to be under the Indian Ocean seabed. In a statement, QP said it has signed an agreement with French multinational oil and gas company Total and its Italian peer Eni to take over three offshore exploration blocks in the Lamu Basin. In the deal that is subject to regulatory approvals by Kenyan authorities, QP said it had acquired a 25% stake (13.75% from Eni and 11.25% from Total) in three blocks located in the offshore Lamu Basin. The three offshore blocks (L11A, L11B and L12) have a total area of approximately 15,000 sq km with water depths ranging from about 1,000 metres to 3,000 metres.
business > Real Estate
QIA, DOUGLAS EMMET ACQUIRE PROPERTY IN US
Q
atar Investment Authority (QIA) and real estate investment trust Douglas Emmett Inc (DEI.N) have acquired a QR1.328 billion ($365 million) real estate development in California, the Qatari sovereign wealth fund said. The deal is for the acquisition of The Glendon, a residential community in Westwood, California, with 350 apartments and approximately 50,000 sq ft of retail. Qatar, whose wealth comes from the world’s largest exports of liquefied natural gas, manages about $300 billion in assets via its sovereign wealth fund, a report said. QIA and Douglas Emmett have to date acquired nine office buildings in Los Angeles, but the latest deal marks the first residential real estate investment for the partnership. QIA has said it is looking to rebalance its portfolio away from Europe in order to invest more heavily in the US, with a target of reaching about QR163.8 billion ($45 billion) in US assets over the next two years from about QR109.2 billion ($30 billion) currently.
REAL ESTATE SALES TOUCH QR9.5 UDC EARNS NET BILLION BETWEEN JANUARY PROFIT OF QR238 AND MAY MILLION IN H1 2019 Qatar Real Estate Transactions Quarterly Trends – Q2-16 to Q2-19
12,000
1,400
10,000
1,200 1,000
8,000
800
6,000
600
4,000
400
2,000
Value of transactions - QAR Mn (LHS)
Q2-19*
Q1-19
Q4-18
Q3-18
Q2-18
Q1-18
Q4-17
Q3-17
Q2-17
Q1-17
Q4-16
Q3-16
Q2-16
0
200 0
No of Transactions (RHS)
Q
atar’s real estate market has seen its sales transaction volume accumulate to QR9.5 billion in value during the first five months of 2019, according to research and consulting firm ValuStrat. The second quarter 2019 review issued by ValuStrat reports a continuing correction phase where the rental market shows a noticeable weakening. Residential rents and capital values softened, and office rents continued to cater to tenants. ValuStrat’s general manager (Qatar) Pawel Banach said: “Residential capital values have reduced, though the quarterly rate of decline has slowed. On the other hand, the rental market showed a relatively noticeable weakening, while sector-wise rental rates continued to fall during the first half of 2019. This trend is expected to persist as oversupply will continue to favour tenants over landlords in the coming quarters. Consumers can take advantage of increasingly competitive prices and flexible payment plans available in Qatar. This coupled with government initiatives such as the introduction of freehold ownership law in the previous quarter, could lead to more long-term investments by expatriates in Qatar.”
14 > QATAR TODAY > SEPETMBER 2019
U
nited Development Company (UDC), a leading Qatari public shareholding company and the master developer of The Pearl-Qatar and Gewan Island, reported a net profit of QR238 million on revenues of QR912 million for the first half of 2019. UDC Chairman Turki bin Mohammed Al Khater said: “UDC managed to build on its stable financial results in the first half of 2019 and is actively pursuing development projects across The PearlQatar and Gewan Island.” “With the launch of the sale of 10 tower land plots in Floresta Gardens and the fourth sales phase of Al Mutahidah Towers, UDC is well positioned to sustain its positive results, as we gear up to launch the construction works for United School International and the Floresta Gardens and Giardino Village gated residential compounds,” he said. Ibrahim Jassim Al Othman, UDC President and Chief Executive Officer, said: “The first half of 2019 marked the achievement of several milestones for UDC, both in terms of sales and leasing. UDC’s success in positioning The Pearl-Qatar as an attractive destination for those seeking a lively community to live, work and do business was again evident in 2019.” Source: MDPS, KAMCO Research, *Q2-19 data onli includes Apr-19 and May-19.
Northwestern University
9
#
2020 U.S. NEWS
BEST COLLEGES
Since opening its campus in Doha in 2008, Northwestern University has risen in the ranks of National Universities in the United States from being ranked 14th to this year’s ranking of 9th – making it the second year Northwestern has ranked in the top 10 along with Harvard, MIT, Yale, and other illustrious U.S. universities.
“We see this [ranking] as a wonderful external endorsement of what our extraordinarily talented community of faculty, staff and students does every day to make Northwestern one of the leading research universities in the world.” Jonathan Holloway, Provost Northwestern University
business > Bank Notes “QATAR’S ECONOMY HAS FULLY COME OUT OF THE INITIAL ADVERSE IMPACTS FROM THE ECONOMIC BLOCKADE WITH NORMALISATION OF CAPITAL FLOWS AND STRENGTHENING OF MACROECONOMIC CONDITIONS.” HE SHEIKH ABDULLAH BIN SAOUD AL THANI Governor Qatar Central Bank
PERFORMANCE OF QATARI BANKS DURING H1 2019 NAME OF THE BANK
NET PROFIT
TOTAL ASSETS
LOANS & ADVANCES
CUSTOMER DEPOSITS
Commercial Bank
QR934 million
QR141.3 billion
QR84.8 billion
QR76.9 billion
Qatar Islamic Bank
QR1.425 billion
QR154.6 billion
------------
QR107.6 billion
Qatar National Bank
QR7.4 billion
QR887 billion
QR634 billion
QR646 billion
Ahli Bank
QR359.3 million
---------------
---------------
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Doha Bank
QR519 million
QR100.8 billion
QR60.9 billion
QR55.6 billion
Qatar Intl Islamic Bank
QR510.6 million
QR54.2 billion
--------------
QR33.3 billion
Masraf Al Rayan
QR1.078 billion
QR102.54 billion
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QR64.41 billion
BANKING SECTOR’S OVERSEAS ASSETS REGISTER GROWTH IN 2018
Q
atar’s banking sector assets outside the country grew by 2% last year after a considerable decline in 2017 in the aftermath of the blockade, according to Qatar Central Bank’s recently released 10th Financial Stability Review (FSR).
This increase was solely concentrated in European countries, while assets in other regions have declined. Those in the GCC region declined the most by around 18% while assets in the European region increased from 30.7% in 2017 to 38.7% in 2018. Credit declined by 11%, contributed mainly by a decline in credit provided to GCC countries (20%) and other countries (24%) but it rose by 21% in the European region. On the liability side, domestic banks' liability outside Qatar, except in the GCC region, increased substantially by around 22% in 2018. Liability in the European region increased the most by 40% while liability in other countries increased by 21%, the report said. Even customer deposits from the European region increased by 56% and by 32% in the North American region, while they rose by 39% from other countries. Again in the GCC region, customer deposits were only from 29%.
16 > QATAR TODAY > SEPETMBER 2019
QATAR’S FOREX RESERVES RISE TO QR196.2 BILLION
Q
atar Central Bank’s foreign exchange (FX) reserves have risen to QR196.2 billion in August, Al Byraq Center for Economic and Financial Studies' weekly analysis.
The Qatar National Bank's monthly monitor report further said that the country’s trade balance surplus remained healthy at around QR13.47 billion in May while the current account balance surplus was QR7.28 billion in the first quarter of 2019 and the fiscal account surplus widened to 3.4% of GDP in the fourth quarter (Q4) of 2018. Qatar’s banks had seen their assets grow by 5.9% year-on-year in May, while deposits grew by 2.7% year-on-year that month. Credit by local banks too registered a growth of 5.6% year-on-year during May this year. Another report by Qatar Central Bank said that the non-resident deposits within Qatar’s commercial banks witnessed a robust 35% year-on-year expansion to QR188.43 billion in May 2019, outpacing the 3% rise in total deposits and indicating the strong confidence among global investors in the local economy amidst the continuing economic blockade imposed by the Saudi-led quartet. Non-resident deposits have been increasing especially from January this year when they stood at QR161.62 billion, rising to QR170.59 billion in February, QR176.44 billion in March and QR178.64 billion in April 2019. Of the QR188.43 billion non-resident deposits, around QR184.98 billion was held with Qatari banks and the remaining QR3.44 billion with foreign lenders.
affairs > Arab Snippets
18 > QATAR TODAY > SEPETMBER 2019
QATARI CLIMBER CONQUERS THE MATTERHORN MOUNTAIN Fahad Badar, a Qatari adventurer, poses with the national flag after scaling the 4,478 m-tall Matterhom Mountain on the Swiss-Italian border. Given the mountain’s symmetric pyramid shape, it counts as one of the most technically challenging mountains to conquer. Earlier in May this year, Badar had made history by becoming the first Arab to scale Mount Everest and Mount Lhotse during the same expedition. Photo source: Fahad Badar Twitter Account 19 > QATAR TODAY > SEPETMBER 2019
business > Viewpoint VAT IN QATAR LIKELY FROM MID 2020
In 2017, the six GCC countries – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates – agreed on a VAT treaty (“VAT Framework”). By doing so, the GCC countries committed to implement VAT at a standard rate of 5%. BY BARBARA HENZEN FIGURE 1
C
omparable to the EU VAT directive (Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax), the VAT framework is not directly applicable in the GCC countries, but defines the applicable standard rate and sets certain common rules, with the aim of harmonising VAT within the GCC area to a certain extent. To date, only Saudi Arabia, the United Arab Emirates (both as of 1 January 2018) and Bahrain (as of 1 January 2019) went live with a VAT system. Qatar has not yet communicated a go live date, but it is expected that VAT is likely to be introduced in mid 2020 and will have a significant impact on the government, companies and consumers. IMPACT ON THE GOVERNMENT One of the major reasons for the introduction
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FIGURE 2
of VAT in the GCC region is to increase nonoil revenues. Even with a standard VAT rate as low as 5% (which is one of the lowest standard rates applied worldwide), the estimated revenue will range from 1.2–2.1% of the GDP (Source: International Monetary Fund, 2016, “Diversifying Government Revenue in the GCC: Next Steps”, GCC Annual Meeting of Ministers of Finance and Central Bank Governors). Where a country will find itself within this range highly depends on the efficiency of the respective country’s administration. Based on the published GDP figures of Qatar for 2018, the generated new revenue could be somewhere between $2 and 4 billion. Given that budget financing needs might be lower in Qatar than in some other GCC countries, there may be no immediate financial impetus for rushing to implement VAT here. However, it is important for
Qatar to comply with international tax standards to ensure a smooth execution of the huge amount of inbound and outbound investments which are currently underway. In this respect, the adoption of VAT can play an important role, since it is often a central element in a programme of modernising the tax administration, developing the use of methods of self-assessment with the aim of easing administration and compliance in relation to other taxes, as well as, collecting data on companies and consumption. This is exactly what we currently see in Qatar with the establishment of the General Tax Authority (GTA) and the introduction of new tax reporting and collection systems. IMPACT ON BUSINESSES VAT is a consumption tax that taxes the value added by businesses at each point in the production of both goods and services.
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business > viewpoint Thereby businesses collect VAT on their sales and pay VAT on their purchases. The VAT paid on their purchases can be credited against the VAT to be paid on the sales, if a compliant VAT invoice is available. In other words, VAT itself is – in an ideal world and if implemented properly – neutral for the businesses, since they only collect the tax from the consumers. (see figure 1). However, it would be wrong to state that VAT has no impact on businesses. First, under the GCC Framework agreement, businesses will have to register for VAT purposes if the total value of their taxable supplies exceeds a mandatory registration threshold of QR364,000. This means most of the businesses in Qatar will have to register for VAT purposes and to file quarterly (or monthly) VAT returns. As a result, the introduction of VAT will bring new responsibilities to the businesses and might increase the compliance costs, since VAT is more complex than the other taxes, which are already applicable in Qatar. Furthermore, all business, including fully Qatari-owned businesses, will have to collect VAT. In order to ensure that they will be able to do this, businesses need to go through their activities and carefully assess the VAT due on the turnover achieved as well as the VAT they will have to pay to their suppliers, and which can be credited against the VAT payable. For smaller and midsize businesses, this process will be relatively straightforward, since most of their supply of goods and services will be subject to the standard rate of 5%. For larger companies as well as businesses in special sectors such as financial services, real estate, education and healthcare, VAT will be much more complex, since the turnover of these businesses and sectors might be partly exempt from VAT. Exempt turnover means that no VAT needs to be charged to the customer, but it can have substantial impact on the suppliers since they are not able to claim credit for any VAT incurred on expenses related to the making of such exempt turnover. Since it is often not possible to allocate a certain expense to either exempt or taxable services, the VAT law in Qatar will have to foresee a method to apportion the VAT incurred to determine the recoverable VAT. The GCC member states which have already implemented VAT have decided to adopt apportionment methods to determine the recoverable VAT for their overhead costs based on the turnover achieved or the use of the VAT paid on expenses (see figure 2). Businesses, which will suffer substantial irrecoverable VAT as shown above, will have to carefully review 22 > QATAR TODAY > SEPETMBER 2019
their pricing policy to assess whether and to what extent they will be able to pass on these irrecoverable costs to their customers. Furthermore, it is advisable to review the business setup (insourcing of services which are currently outsourced, VAT grouping etc.) to limit irrecoverable VAT to the extent possible. Beside a proper analysis of the turnover achieved and the expenses incurred, it is essential that all businesses, regardless of their size or industry, review their existing IT systems and processes. They need to assess whether they will be able to collect all the data necessary to file VAT returns on a quarterly or monthly basis and whether they have assurance that the data collected is accurate and all invoices received by their customs qualify as VAT invoices. If gaps are identified, they need to be closed well in advance of the implementation of VAT to avoid penalties and non-recoverable VAT. Another aspect that businesses need to consider are existing sales and/or procurement contracts that are silent on the taxes. Such contracts should ideally be renegotiated or amended to clarify whether the prices mentioned in the contracts are inclusive or exclusive of VAT and to ensure that VAT can be passed on to the customers. If this is not done, companies risk suffering from a decrease in revenue of 5% as the result of implementation of VAT, since the prices mentioned in the contracts will likely be understood as inclusive of VAT. Experiences from the GCC countries that have already implemented VAT show that the companies which were not ready for VAT in time had failed to execute the steps mentioned above or did not start early enough. It is therefore advisable that companies start preparing as soon as possible. IMPACT ON CONSUMERS As explained earlier, VAT is a consumption tax, which means that the tax will ultimately be borne by the consumers. The implementation of VAT in Qatar will therefore lead to an increase in consumer prices. However, in order to keep the price increases at an acceptable level also for consumers with low incomes, Qatar will most likely follow the example of other GCC countries and foresee a VAT rate of zero percent on basic food items as well as other essentials.. For consumers with higher salaries, the impact of VAT will vary highly depending on their lifestyle and spending behavior, but with a VAT rate of 5% (which is very low compared with other jurisdictions), this should be digestible.
“EXPERIENCES FROM GCC COUNTRIES THAT DID ALREADY IMPLEMENT VAT, SHOW THAT THE COMPANIES WHICH WERE NOT READY FOR VAT IN TIME, HAD FAILED TO PREPARE PROPERLY OR DID NOT START EARLY ENOUGH. IT IS THEREFORE ADVISABLE THAT COMPANIES START PREPARING AS SOON AS POSSIBLE.” BARBARA HENZEN Partner, Head of Tax and Corporate Services KPMG Qatar
affairs > World View
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AFRICA WEEPS At the age of 95, former Zimbabwean President Robert Mugabe died on September 6, 2019 in Singapore. Citizens, dignitaries and politicians paid their respects to the funeral of Robert Mugabe, father after leading the country post-independence from 1980 to 2017. The body of the former President lies in state at Rufaro Stadium in Harare, Zimbabwe. Photographer: STR Photo credits: EPA-EFE/STR
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business > Listening Post
MARCHING AHEAD During the first half of 2019, KAHRAMAA continued its pace in improving its high-quality electricity and water supply services through numerous developments and massive projects in order to gear up for the country’s upcoming events, writes Alexandra Evangelista AHMED NASSER M AL NASER
Director of Technical Affairs KAHRAMAA
I
n an exclusive interview with Qatar Today, Director of Technical Affairs in KAHRAMAA, Ahmed Nasser M. Al Naser, shares the company’s achievements across the country’s electricity and water sector besides providing insights into the major ongoing and future projects that are aimed at strategically benefiting the country, its community and the environment. Excerpts: “KAHRAMAA is always here and we are working to provide first-class services. The government has invested huge amounts to reach this stage but it is also our responsibility as consumers to consume water and electricity judiciously as a means for all of us to achieve the Qatar National
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Vision,” he said.
HOW HAVE TRADE AND TRAVEL AFFECTED THE COMPANY AND ITS PROJECTS? The impact of the blockade on our projects was studied carefully and all measures were taken to avoid or minimize the same on the ongoing and future infrastructure projects by not relying on imports from neighbouring countries as in the past. Qatar has already tackled the issues by having several agreements to open new freighter routes to Hamad International Sea Port, one of the largest sea ports in the Middle East, in addition to all other facilities. The company also encouraged local firms in the development of these projects along with
global investors. Once the blockade was enforced, the contracts with those countries imposing the boycott were immediately replaced. Which is why so far, nobody has ever really felt or noticed any impact on the daily supply and the projects are going ahead as per schedule. KAHRAMAA also implements a practice called “Strategic Spare” in which we keep a stock of critical items or equipment for the network. We keep a certain percentage in our stores and we don’t touch it unless it is for emergency purposes. All those strategies were already in place and implemented in KAHRAMAA even before the blockade came into force and this has helped us in minimizing the impact. Besides, KAHRAMAA has a strong relationship with
all of its manufacturers from around the globe. Even though Qatar is a small country, it can be considered as the biggest in terms of resources in the Middle East. Aware of KAHRAMAA’s good relationship with its partners, many major international firms supported us by offering a complimentary freight service, altering routes and providing other necessary support.
HOW IS THE COMPANY DEALING WITH THE IMPACTS OF THE BLOCKADE?
By replacing all equipment and materials that were being imported from the blockading countries and following transportation through different sea and airfreight routes. The companies of contractors and subcontractors cooperated in this regard and achieved the work without any noticeable delay. From our side, it was indeed an emergency so we worked round the clock with our teams to ensure that there would be no impact and to ensure uninterrupted power supply since day one. KAHRAMAA has put in place all necessary strategies with the government. Apart from this, KAHRAMAA has definitely worked out all the nitty-gritty details of strategies and procedures for every scenario due to the embargo so as to be one or two steps ahead of any inevitable conflict.
WHAT ARE THE ONGOING POWER PROJECTS OF KAHRAMAA?
Electricity transmission projects: Phase 13 (63 milestones are ongoing) and Phase 12 (33 milestones are ongoing) are major projects and they include those relating to Manateq for Economic Zones/Qatar Rail/ Aspire/World Cup 2022.
WHAT IS THE STATUS AND PHASE OF THE QATAR POWER TRANSMISSION SYSTEM EXPANSION NETWORK?
KAHRAMAA has completed all 73 projects taken up in Phase 10, while 106 out of 108 projects, constituting 98% in Phase 11, have been executed. Similarly, 51 of the 84 projects planned in Phase 12 (85%) and 61% of the 65 projects in Phase 13 have been completed so far. The total value of Phase 13 projects is QR7 billion.
WHAT PROGRESS HAS KAHRAMAA MADE IN COMMISSIONING THE SUBSTATIONS FOR THE 2022 FIFA WORLD CUP STADIUMS?
With the commissioning of the new substation Ras Abu Aboud 2 in May this year, KAHRAMAA has completed all five electricity projects pertaining to the 2022
FIFA World Cup stadiums at a cost of QR800 million. While Al Hedhan subtation at Al Bayt stadium, Al Jahanniya-3 substation at Al Rayyan stadium, Al Wukair-1 substation at Al Wakra stadium were commissioned in July, May and February 2018, respectively, Mehairja substation at Khalifa International stadium was completed in May 2017. These five substations are designed specially to ensure uninterrupted power supply to the World Cup stadiums as part of high international standards of safety and security. Since reliability of a network is one of the main criteria for hosting a World Cup, FIFA visited and commended the projects as one of the greatest networks they have seen for a World Cup. The projects are 100% operational and being given final touch-ups, way ahead of schedule.
DOES KAHRAMAA HAVE ANY PLANNED INVESTMENT IN THE ELECTRICITY SECTOR THAT IS ALIGNED WITH THE SECOND QATAR NATIONAL DEVELOPMENT STRATEGY?
KAHRAMAA always prepares a plan for the next five years that is in line with the Qatar National Vision. This plan includes projects related to generation and desalination production facilities to meet the rapidly increasing demand for power and water. The Al KARSAA solar power plant IPP with a capacity 700 MW, which is the first renewable facility to be constructed in Qatar, is in the technical and commercial evaluation stage while Facility ‘E’ IWPP with a combined production cycle capacity of 2300 MW and 100 MIGD is under tendering preparation stage. Also, the upgrade of the
Power Transmission Expansion System including the upgrade of the Telecom & Scada System is ongoing. KAHRAMAA has noticed a decline in the unit cost of solar energy so it has become more competitive. Having a solar project is suitable in Qatar especially during the afternoon peak hours. It can also help reduce the production cost of the company and serve a great foundation for security as another source of power.
HOW MANY UNDERGROUND SUB STATIONS AND PARKING SUBSTATIONS HAVE BEEN COMPLETED SO FAR?
During the last few years, KAHRAMAA has completed many underground and multistorey carpark buildings such as Msheireb Central S/S, Sheraton Park S/S, Mamoura South S/S, Al Jahhaniya-1 SS (Mall of Qatar), Doha Land-1 SS, Doha Land-2 SS at Lusail supervised by KM, Boulevard-1 SS, Boulevard-2 SS, Marina-1 SS, Marina-2 SS and Marina-3 SS Boulevard-2 SS, Marina-1 SS, Marina-2 SS, Marina-3 SS, Energy City SS, Marina-1 SS and Golf-1 SS (all underground substations). KAHRAMAA has also completed substations with multistorey carpark facilities and they include New Grand Hamad Avenue S/S, Al Bidda Metro SS, WBT East SS, West Bay Super-2 SS, 6 WBT East SS, West Bay Super-2 SS, New Salata S/S, Al Sadd-3 S/S and HMC Super S/S.
WHO ARE YOUR BULK CUSTOMERS AND HOW MANY MULTINATIONAL CONTRACTORS ARE INVOLVED IN ELECTRICITY PROJECTS? TELL US ABOUT KAHRAMAA'S UPCOMING 27 > QATAR TODAY > SEPETMBER 2019
business > listening post AND NEW PROJECTS.
Our bulk customers are Qatar Rail and SCDL (Q 22 Projects) with five substations each Manateq with 12 substations New Port with four substations, Qatar Armed Forces, Ministry of Interior, Amiri Guard, ISF, Qatar Foundation, Qatar Petroleum, Ezdan, Mall of Qatar, Barwa, Al Mirqab, PEO, Al Waab City, Doha Festival City, Msheireb Properties and Qatari Diar. The global companies involved in executing our projects include Siemens, GE, ABB, Larsen & Toubro, Furukawa, Hyosung, Hyundai, LS Cables, Prysmian, Galfar Al Misnad, Nexans, Cegelec, Kalpataru, Viscas & J-Power, Best & Beta and Mitsubishi. Our upcoming projects are Solar Power Evacuation Projects, Facility-E Power Evacuation Projects, Qatar Power Transmission Expansion Projects (new substations and associated works) and power supply to Qatar Armed Forces Expansion Projects. The projects under tendering include 400kV, 220kV and 132kV overhead lines, 400kV series reactors at ANS and LZS substations and 11kV submarine cables for the power link to Banana Island. More projects will be announced in the near future and will be under Phase 14
projects of the electricity transmission system expansion or upgrade of the system network such as substations and underground cables or OHL, and other projects will be part of the private sector developments which are under the direct supervision of KAHRAMAA.
WHAT IS THE CURRENT PHASE AND STATUS OF THE WATER SECURITY MEGA RESERVOIRS PROJECT?
This prestigious project is in operation. All five reservoir stations are operational, and filling them is ongoing. Contracts for 650 km of pipelines costing around QR5.56 billion have been awarded and 98.2% of the works have been completed so far. Likewise, contracts for constructing five primary reservoirs and pumping stations (PRPS) costing around QR8.75 billion have been awarded and 97% of the works have been completed till now. KAHRAMAA is always working to supply all areas of Qatar with drinking water without interruption and there is also availability of extra water storage for emergency conditions. We always keep ourselves updated with the latest information about new areas
under development in corporations with concerned authorities responsible for that and, accordingly, we establish facilities necessary to supply water to new areas,” Ahmed Nasser M. Al Naser added.
2022 FIFA WORLD CUP PROJECTS KAHRAMAA has built major water facilities in preparation for the mega sporting event to be held in 2022, the most notable being the Water Security Mega Reservoirs Project with a total water capacity of 1,500 million gallons per day, which covers storage requirements up to 2026. It adds 155% to the current water storage capacity of 900 million imperial gallons. This provides added multiple reliability and security to the World Cup 2022. Aside from this, KAHRAMAA has also added several Strategic Reservoir and Pumping Station facilities. While some are already operational, others are on-going in order to enhance services with greater capacities in each designated service area, one of which is the Qatar 2022 Precinct & Training Sites among other related event sites.
KAHRAMAA’S LATEST ACHIEVEMENTS
Strategic Mega reservoirs commissioning and following on high voltage network
Substation
End User Name
220/132kV Ras Laffan 3 S/S
Kahramaa
t132/66/11kV Wakrah S/S (Replacement) - Stage2
Kahramaa
66/11kV Khalifat 2 S/S
Kahramaa
66/11 kV Ras Abu Aboud 2 substation
2022 Projects
66/11kV Umm Al Seneem -1 S/S
Milaha – Qatar Navigation
66/11kV MEHAIRJA-1 S/S
Aspire
132/66/11kV Maither Central - Upgrade
Kahramaa
400/220/132/66/11kV Al Wajbah Super
Kahramaa
S10 132/33kV Lusail Center Metro S/S
Qatar Rail
132/11KV UMM AL HOUL -1 SUBSTATION
Manateq Logistic
132/11KV RAF 2 SUBSTATION
Manateq Logistic
132/11kV BIRKAT AL-AWAMER 2
Manateq Logistic
Old Airport Refurbishment - Stage 2
Kahramaa
Old Airport Refurbishment - Stage 3
Kahramaa
400/220/66/11kV Umm Al Amad Super S/S upgrade
Kahramaa
66/11kV Lusail Marina 4 S/S
Lusail
66/11kV Lusail Qetaifan Island South S/S
Lusail
66/11kV Khore Southeast S/S
Kahramaa
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business > Real Estate
THE BIG 5 CONSTRUCT QATAR PREVIEW Bringing the world of construction to Qatar’s $75 billion project market.
U
nder the patronage of His Excellency Sheikh Abdullah bin Nasser bin Khalifa Al Thani, the Prime Minister and Minister of Interior, and held at the state-of-the-art Doha Exhibition & Convention Centre from 23 to 25 September, The Big 5 Construct Qatar 2019 hosts more than 150 exhibitors from 20 countries and offers 35 free-to-attend education workshops. After a successful launch edition in 2018, The Big 5 Construct Qatar returns this month to display the latest construction innovations and solutions from worldwide brands. The event also offers complimentary access to education workshops across a number of industry-leading topics. In collaboration with Qatar National Tourism Council, the Strategic Partner for The Big 5 Construct Qatar, the event also features the Hosted Buyers Program and Media Familiarization Trip. The two initiatives are aimed at promoting the opportunities Qatar has to offer to international business visitors. Loubna Aghzafi, Country Manager for dmg events (Doha), comments: “We are excited to kick-off the second edition of The Big 5 Construct Qatar with a mission to support the expanding requirements of Qatar’s construction, transport and infrastructure sectors.” She adds: “With more than 500 active projects worth close to $75 billion in the country, the Qatar market continues to offer excellent opportunities for the construction companies participating at this event.” A dedicated platform where international and regional construction players can meet face-toface, do business and learn in Doha, the 2019 edition hosts 150 exhibitors from 20 countries, welcoming returning exhibitors as well as companies that are eager to participate for the first time. AI Tech Lab W.I.L.L is one of those brands who look forward to being a part of the 2019 show. Abdulaziz Alsubaiey, Chairman says: “The Big 5 Construct Qatar is one of the biggest events to take place in Qatar in regards to the construction industry. There is no doubt it is the perfect platform to do a soft launch of our exciting 30 > QATAR TODAY > SEPETMBER 2019
innovative construction development app.” AI Tech Lab W.I.L.L exhibits as part of the event’s Construction Technologies & Innovations product sector and, with six more product sectors on offer, The Big 5 Construct Qatar displays products for all stages of design and build including MEP Services, Building Interiors & Finishes, Building Envelope & Special Construction, Construction Tools & Building Materials, Concrete, and Plant Machinery and Vehicles. Having provided CPD certification to over 5,000 construction professionals in the 2018 launch edition, the event brings back the popular free-to-attend CPD (Continuing Professional Development) workshops. Over 35 sessions make up the agenda, which covers themes of Project Management, Architecture and Design, General Construction, Sustainability, BIM Talks and Women in Construction. Returning speaker, Omeima Ismail, Founder of Architects HUB, says: “It is hugely important for events like The Big 5 Construct Qatar to offer education that is not only free but also certified, and the sheer number of sessions available is remarkable. By hosting industry leaders from around the world, the event goes a long way in showing commitment to the local construction landscape – a booming industry which integrates modernity and raising standards at its core.” At its launch edition in 2018, The Big 5 Construct Qatar welcomed more than 12,000 visitors and, thanks to pioneering technology offered to exhibitors, over 10,000 sales leads
were generated. The event also hosted a team of experts from Accessible Qatar to celebrate the most accessible stands at the exhibition. Organised by dmg events (Doha), The Big 5 Construct Qatar is backed by Strategic Partner, Qatar National Tourism Council. The event is free to attend and will run 23 to 25 September 2019 from 11a.m. – 7p.m. at the Doha Exhibition & Conference Centre. The event will run alongside the all-new Transport Evolution Qatar Assembly & Expo.
23 - 25 SEPTEMBER 2019 DOHA EXHIBITION & CONVENTION CENTER, QATAR
QATAR’S MEETING POINT FOR THE CONSTRUCTION INDUSTRY Register online for free entry
WHAT TO EXPECT 150+ EXHIBITORS
20+ EXHIBITING COUNTRIES
7 DEDICATED PRODUCT SECTORS
35+ FREE CPD CERTIFIED WORKSHOPS
PLANT MACHINERY & VEHICLES
CONCRETE
CONSTRUCTION TOOLS & BUILDING MATERIALS
MEP SERVICES
BUILDING ENVELOPE & SPECIAL CONSTRUCTION
CONSTRUCTION TECHNOLOGIES & INNOVATIONS
REGISTER FOR FREE ENTRY TODAY
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COVER STORY
AUM INDUSTRY
POISED FOR GROWTH THE ASSET UNDER MANAGEMENT (AUM) INDUSTRY IN QATAR IS STILL IN A NASCENT STAGE BUT IS POISED TO GROW IN THE COMING YEARS AS THE GOVERNMENT IS ENCOURAGING MORE INVESTORS INCLUDING FOREIGNERS TO DERIVE MAXIMUM BENEFIT FROM THIS UNTAPPED INDUSTRY WITH LARGE POTENTIAL. BY VL SRINIVASAN
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COVER STORY
AUM INDUSTRY POISED FOR GROWTH
T
he asset management industry’s current market size in Qatar is relatively small compared with its peers in the region and is valued around QR46 billion, though Qatar is among the richest countries and ranked seventh in the world with GDP per capita income as high as $72,677 in 2019. Despite these favourable factors, there are only eight asset management firms operating in Qatar, of which six are licensed by Qatar Financial Centre and two were operating under the regulation of Qatar Central Bank at the end of 2018. Qatar Insurance Company has also registered a subsidiary “Epicure Investment Management” at Qatar Financial Centre in May this year with an initial capital of QR1.8 million. The new company is yet to commence activities such as investment business consultation among others. However, the asset management industry in the country is expected to witness sharp
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growth over the next few years as there is a massive untapped market potential. “Though the asset management industry in Qatar is less developed, Qatar-domiciled funds have an AuM to GDP ratio of only 0.2% as compared to this global AuM as the percentage of global GDP is around 15%,” M.R.Raghu, head of research at Kuwait Financial Center (Markaz) and managing director of Marmore Mena Intelligence Kuwait, said. Improving the quality of listings and increasing the pool of securities and associated financial products could be instrumental in improving the prospects of the domestic asset management industry. “Wider ownership outside the family business will further increase the retail and institutional investor’s interest and overall liquidity in the market. Further, the affluent population base majority, which currently invests more in developed markets, provides huge opportunities for the domestic asset management industry,” he said.
PRIVATE WEALTH GROWS IN MIDDLE EAST In the Middle East, private wealth continued to experience positive growth between 2016 and 2017 (8%), and this growth is projected to remain steady over the next five years according to a report by The Boston Consulting Group (BCG) entitled “Global Wealth 2018: Seizing the Analytics Advantage.” According to the report, global personal financial wealth grew by 12% to QR736.05 trillion ($201.9 trillion) in 2017. The main drivers were the bull market environment in all major economies—with wealth in equities and investment funds showing by far the strongest growth—and the significant strengthening of most major currencies against the dollar. Personal wealth in the Middle East rose by 11% to QR13.83 trillion ($3.8 trillion) in 2017, a significant increase compared with the CAGR for the previous five years. In comparison, personal wealth in Qatar has grown at 9% between 2016 and 2017.
According to Capgemini’s World Wealth Report 2019, global high-net-worthindividual (HNWI) wealth declined by 3% for the first time in seven years, primarily driven by a slump in equity-market performance and slowing economies in key regions. After a stellar 2017, stock markets faced turbulence in 2018 as global market capitalisation declined by 15% amid high volatility. Against a backdrop of significant global wealth decline, Asia-Pacific was impacted the most while Europe also experienced a noticeable dip in HNWI wealth. Asia-Pacific, a global powerhouse for the last seven years, accounted for 50% of global wealth decline led by China, which accounted for 25% of the global wealth decline. Europe was responsible for about 24% – or $500 billion – of the overall $2 trillion decline in HNWI wealth. The Middle East offered the only positive news while North America’s and Latin America’s performances were mixed. The Middle East recorded an increase in HNWI population and wealth (6% and 4%, respectively), while North America was almost flat. Latin America witnessed HNWI wealth declines of 4% even though population increased by 2% as ultra-HNWIs, who dominate the wealth landscape, are more vulnerable within a declining economic scenario. SPOTLIGHT ON QATAR In 2016 to 2017, private wealth was driven primarily by the positive development of life insurance and pensions. In Qatar, personal wealth is projected to grow at a Compound Annual Growth Rate (CAGR) of 7% and expected to reach QR918 billion ($270 billion) in investible assets by 2022. “Taking an in-depth look at wealth distribution, Qatar non-investible assets are expected to increase at a CAGR of 23% in the next five years, while investible wealth growth is projected to accelerate at a CAGR of 7%,” explained Markus Massi, Senior Partner & Managing Director of BCG Middle East’s Financial Services practice, in the BCG report. “When it comes to asset allocation, currency and deposits, at 45%, were the highest proportion of assets in Qatar in 2017, followed by offshore assets at 41%, equities and investment funds at 10%, and life insurance and pensions at 3%. By 2022, currency and deposits, and life insurance and pensions are expected to experience slight growth
to 53% and 5%, respectively. For offshore assets, and equities and investment funds will experience a decline to a respective 36% and 6%,” Massi added. At 24%, life insurance and pensions drove growth by asset class between 2016 and 2017 in Qatar. Other drivers of asset class growth included currency and deposits at 21%, and offshore assets at 5%. Equities and investment funds and bonds experienced negative growth at -16% and -2%, respectively. Looking to the future, growth by asset class is expected to experience a slightly slower but steady growth, with life insurance and pensions at 23% and currency and deposits at 11% CAGR over the next five years. In the same period, growth in offshore assets will remain constant at a CAGR of 5% and equities and investment funds and bonds will accelerate to -2% CAGR and -1% CAGR, respectively. While offshore share is expected to decline over the next five years from 41.4% in 2017 to 35.5% in 2022, it will continue to grow at a CAGR of 4.6% to reach QR338.52 billion ($95 billion) in Qatar in the same period. IPA TO BOOST FDIS Further, Qatar has set up the Investment Promotion Agency (IPA) with the aim of further attracting foreign direct investment (FDI) in line with objectives set out in the Qatar National Vision 2030. The agency will be a single and complete source for investment solutions in Qatar by attracting FDI in all of the country’s priority sectors. The entity will also pursue targeted, sector-specific investment promotion agendas and co-ordinate investment promotion and marketing activities with key stakeholders, as well as develop policy advisory. The IPA Advisory Board, which is chaired by the Minister of Commerce and Industry, HE Ali bin Ahmed Al Kuwari, recently met and discussed the agency’s strategy, roadmap and budget, as well as the key target sectors and incentives plan. The Minister later said that Qatar has already been an attractive hub for foreign direct investment and launching the IPA would add to Qatar’s efforts to further boost FDI into the country. The agency will achieve this through a number of initiatives such as working with stakeholders to support international businesses wishing to set up operations in Qatar. “We are committed to stimulating Qatar’s
“WE ARE COMMITTED TO STIMULATING QATAR’S ECONOMIC DEVELOPMENT BY ATTRACTING FOREIGN DIRECT INVESTMENT THROUGH A NUMBER OF AVENUES. THE IPA WILL ENHANCE THESE EFFORTS BY ENCOURAGING MORE INTERNATIONAL INVESTORS TO SET UP IN QATAR, LEADING THE COUNTRY INTO A NEW PERIOD OF ECONOMIC GROWTH.” HE ALI BIN AHMED AL KUWARI Minister of Commerce and Industry State of Qatar
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COVER STORY
AUM INDUSTRY POISED FOR GROWTH
economic development by attracting foreign direct investment through a number of avenues. The IPA will enhance these efforts by encouraging more international investors to set up in Qatar, leading the country into a new period of economic growth,” he added. Foreign investments, including foreign direct investment (FDI) and portfolio investment, in Qatar amounted to QR722.6 billion by the end of the first quarter of this year, recording a month-on-month increase of 1.1 percent, or QR7.9 billion compared with QR714.7 billion reported for the previous quarter (Q4 2018).
“WITH UNCERTAINTY HAVING RISEN IN THE REGION SINCE OIL PRICES BEGAN FALLING IN LATE 2014, AND THE BLOCKADE OF 2017, INVESTOR APPETITE FOR RISK PLUNGED. SAFER, BUT LOWER, RETURN ASSETS HAVE BEEN SOUGHT, SUCH AS GLOBAL FIXED INCOME AND REAL ESTATE.” AKBER KHAN Senior Director—Asset Management Group Al Rayan Investment
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LOW DOMESTIC RATES WILL BE HELPFUL Senior Director—Asset Management Group with Al Rayan Investment, Akber Khan, said that the low deposit rate environment would be helpful for the investment industry as both individual and institutional savers feel pressure to enhance returns; investments are often the obvious alternative. If Qatar Central Bank reduces domestic interest rates as US rates fall during 2019, this should further increase investor interest in the local asset management industry. “With uncertainty having risen in the region since oil prices began falling in late 2014, and the blockade of 2017, investor appetite for risk plunged. Safer, but lower, return assets have been sought, such as global fixed income and real estate. Encouragingly, in 2019, we are seeing more investors beginning to increase allocation towards higher risk assets such as equities,” he pointed out. He further said that the newly formed IPA was expected to take steps to help develop and promote the local asset management industry; clearly a welcome initiative. Within the domestic economy, while there are certainly areas of weakness, positive signs are also evident. As an example, the government’s focus on boosting tourism has started yielding results, with healthy increases seen in visitor numbers by both air and sea. Hence, despite significant growth in room supply, hotel occupancy has risen during 2019 to levels comparable with much of the region. Relevant for construction, an upturn has been seen in the number of building permits issued. With equity markets being a forwardlooking indicator, it will be interesting to
see how far in advance of the 2022 FIFA World Cup investors will begin pricing in the consumption boom that Qatar will enjoy. Given the scale of the event, and the requirement for tens of thousands of security and organisational staff, the population will surge far in advance of the tournament, not just as a result of visitors during the four weeks of matches, he said. “Risks to the industry primarily relate to markets and sentiment, so an acceleration in the deterioration of the global economy would obviously be negative and would also hurt the oil price. Any corresponding slowdown in government spending would have a negative multiplier effect on the economy,” he added. BRIGHT PROSPECTS The MSCI upgrade, elevating Qatar to Emerging Market status, has increased liquidity on the Qatar Stock Exchange and encouraged foreign inflows into the local market, enhancing the profile of domestic companies beyond the GCC. As the economy continues to grow and diversify, there is expected to be a rise in the number of affluent and wealthy households. This trend should boost demand for professional asset managers as individuals become increasingly sophisticated and attracted to options that can protect and grow their investment portfolios through diversification and asset allocation strategies. Dr Ataf Ahmed, Global Head of Asset Management at QInvest, said the long-term prospects for Qatar’s asset management industry were “very positive” given it has been still in a nascent stage of development and continues to demonstrate high growth potential. In recent years, the FIFA World Cup in 2022 has represented an important catalyst for the nation’s socioeconomic plans, helping to ensure that the strategic targets of Qatar National Vision 2030 remain on track despite the recent blockade. “A notable challenge for domestic asset managers is the complexity of the regulatory environment as there are currently multiple regulators stipulating conflicting directives on the industry. While memoranda of understanding have brought some consistency, there is still a tendency for local regulators to focus too much on domestic firms and not enough on ‘suitcase bankers,’ who fly in and out while operating outside of the parameters imposed on firms
such as QInvest,” he averred. Currently, the majority of investors still have a highly defensive mindset and a focus on yield. At QInvest, our fastest-growing product line in recent years has been the range of funds available on the Qinvest SQN Income Fund platform. “We are launching our fourth fund imminently to capture investor demand for the 7% annual dividend it will distribute on a monthly basis,” he said. STRONG REGULATORY FRAMEWORK CEO of Aventicum Capital Management Qatar Fahmi Alghussein too said that the prospects for the asset management industry in Qatar for the long term are positive, also because the country and the regulatory authorities are offering every support there is by developing a strong regulatory framework to boost and create a vibrant asset management industry. According to him, the Qatari investor base is becoming more sophisticated as it diversifies into other asset classes and geographies. Therefore, institutions like Aventicum Capital Management need to broaden their spectrum of products and services to enable them to compete with global asset managers which come to Qatar on a regular basis to offer HNWIs, family groups and local institutions best-in-class products and services. “In a competitive global environment we must raise the standards of the talent pool to ensure it is qualified and competent to represent their respective companies, have the right product knowledge and avoid misrepresentation of the products and services on offer,” he said. This, in turn, will ensure the success of a local asset management industry, which also creates the opportunity to retain the most talent and the wealth that is being created in Qatar. “Additionally, we need to innovate the product offering by expanding the areas of interest for investors locally such as aviation finance and leasing as well as venture capital (VC) funds investing in companies that come out of the local universities and research and development foundations. This will put us onto the right path to commercial development and the eventual success of a local VC and private equity industry – similar to those in the US, Europe and Asia,” he said. Aventicum Capital Management also sees opportunities to develop investment
strategies that allow the company to have long and short equity strategies, which will appeal to international investors who are looking to invest in the local market (Qatar) and enhance the investment returns by using derivatives and options as hedging tools for investors. “But there are also risks to the growth of the industry if the companies become complacent, inefficient and bureaucratic. The capital markets, be it on the equity, debt or private side, need to be able to bring the players in a timely manner to avoid driving money out of our local ecosystem that still needs to be built and grow to ensure long-term sustainability,” Alghussein said. “Innovation, technology and disruption are going to be a feature of our businesses and this means we need to move in pace with the changes and challenges or face irrelevance as domestic investors seek other markets and investments outside the country”, he added. GROWTH ENGINES Alghussein said that Aventicum was very fortunate to have a big pool of domestic liquidity and wealth, be it with the sovereign wealth fund, pension funds or local institutions, which is expected to grow further as the economy expands in the years ahead. This expansion is supplemented by a young population with a different risk appetite compared to their parents and grandparents who had other challenges and opportunities. This generation will seek to outsource its investment needs to regulated and trusted professional asset managers. “The support from local institutions and private investors is critical for the long-term success of the domestic asset management industry. The need to diversify strategies is a good risk management tool and creates opportunities for a healthy competitive environment where the best and smartest outperform and thus win the confidence of investors to take on risk and invest,” he said. According to Raghu, the Islamic asset management industry, which still remains underdeveloped, will continue to remain a key driving factor in attracting investors. The Qatar fixed income sector is also an attractive asset class that generally has lower volatility with higher yields. For instance, among similar rated countries by S&P, the average yield (past one-year period) of a 5-yr bond is 1.3% as compared to 3.6% for Qatar. The bonds inclusion in the emerging market
“BUT THERE ARE ALSO RISKS TO THE GROWTH OF THE INDUSTRY IF THE COMPANIES BECOME COMPLACENT, INEFFICIENT AND BUREAUCRATIC.” FAHMI ALGHUSSEIN Chief Executive Officer Aventicum Capital Management Qatar
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COVER STORY
AUM INDUSTRY POISED FOR GROWTH
bond index also strengthened the case of the domestic bond market, he pointed out.
“A NOTABLE CHALLENGE FOR DOMESTIC ASSET MANAGERS IS THE COMPLEXITY OF THE REGULATORY ENVIRONMENT AS THERE ARE CURRENTLY MULTIPLE REGULATORS STIPULATING CONFLICTING DIRECTIVES ON THE INDUSTRY. ” DR ATAF AHMED Global Head of Asset Management QInvest
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RESTRICTIONS ON QATAR According to Dr Ahmed, the GCC travel ban has actually had the biggest effect on Dubai and has demonstrated the impracticalities of having a single GCC hub. In Qatar, the impact has been mixed. While it has closed off a sales market for domestic asset managers, this has been offset by reduced competition from firms based in other GCC countries. There is no doubt that Qatar now looks considerably overbanked with too many financial institutions trying to attract deposits from a limited number of depositors. The cost of funding has increased which has resulted in Qatari banks offering a much higher deposit rate than one would expect in a country with its fiscal strength, deep reserves and credit rating. For example, 12-month QIBOR rates are currently trading at almost 1% higher than 12-month LIBOR rates despite the currency peg, he pointed out. Lauding the government’s efforts to wriggle out of this unexpected and challenging disruption with exceptional skill and assurance, he said proposals to encourage foreign investment and accelerate the diversification of the economy have proved successful in improving sentiment after the initial shock. This has benefited equity markets as evidenced by the Qatar Stock Exchange’s strong run last year and continued, although somewhat volatile, rally in 2019. Relaxing the conditions for foreign visitors to enter Qatar, with free visas on arrival now available for 81 countries, has reduced the impact of fewer tourists from Saudi Arabia, the UAE and Bahrain. This has not only helped to benefit the tourism industry directly, but has also resulted in wider positive externalities across other domestic sectors. “By taking steps now to decrease deposit rates, investors will be forced to look beyond yield-oriented solutions and consider more productive options offered by asset managers. The first bank merger between IBQ and Barwa Bank is a welcome step in reducing the number of banks and we expect to see more consolidation, which represents a positive step for the economy. The strides made by the QFCRA, in respect to greater alignment with global regulators, can also help Qatar-based asset management firms compete on the global
stage,” Dr Ahmed said. Alghussein too said that every crisis creates opportunities for those willing to take the right risks and invest in their businesses. “We were amazed to see how quickly Qatar adapted to the boycott and how little impact it eventually had. We always face new challenges in our industry globally, so this is not new and will not change. The local asset management industry has adapted to a new shift of focus on product innovation and client coverage and listens to the needs of investors to adapt to the new paradigm shift,” he pointed out. In the long run, with the support of all, the local asset management industry is on a solid track to continue growing and expanding. This is important as our industry needs to compete on a global level and ensure wider appeal as our markets and economics today are benchmarked against other Emerging Markets peers and international standards,” Alghussein added. Raghu too said that there was adverse impact on the overall economy due to the restrictions but it was difficult to gauge the impact it had on the asset management industry. In fact, the assets under management of funds domiciled in Qatar have actually increased compared to, couple of years ago. However, to negate the impact, the government has taken several steps such as increasing the limit on foreign ownership to 100% in multiple sectors, which will attract investments from investors globally. In addition, the law on regulating the ownership and usage of real estate by expatriates in the country will increase their investments within the country, Raghu added. GOVERNMENT SUPPORT Dr Ahmed said that a common theme arising from Qatar-based asset managers is that they would welcome greater support from government and regulators, similar to the backing that was provided to banks in the wake of the last financial crisis. Asset management is currently highly focused on the Qatari community and there is not enough emphasis placed on securing investment from expats. While some long-term expat residents see Qatar as their home and are prepared to invest at a local level, a significant proportion of the population continues to remit their savings outside the country, Dr Ahmed said. One step which has helped to foster investment through local asset managers
is the introduction of permanent residency for long-term expats. However, more could still be done to encourage expats to view Qatar as their long-term home, which in turn would encourage more local investment. The benefits of this would be substantial for both the domestic economy and the nation’s asset management industry, Dr Ahmed added. MUTUAL FUNDS Coming to mutual funds in Qatar, the asset management sector remains limited accounting for just QR815.36 million ($224 million), according to reports. Notably, the sector has been more developed in Shariahcompliant funds, which represent just over 50% of total fund assets. Opportunities in Qatar’s fund and asset wealth exist, despite the currently limited development of the fund industry. In March 2018, Masraf Al Rayan launched Qatar’s first Shariahcompliant ETF – Al Rayan Qatar ETF – with initial assets worth QR436.8 million ($120 million). This is the world’s largest singlecountry ETF and second-largest Islamic fund. The ETF tracks the performance of the QE Al Rayan Islamic Price Index of Shariahcompliant stocks trading on the QSE. Also listed on the QSE, the fund targets foreign investors from the US, Europe and Asia. The gap between Qatari-domiciled investments in mutual funds and total wealth suggests that increasing legal stability is important for investor confidence. This may make the QFC the ideal area to promote the local asset management sector because of the legal framework in place. Domestic private wealth is estimated at QR127.4 billion ($35 billion), with 290 ultra-high-net worth individuals with more than QR109.2 million ($30 million) in investable assets. These individuals are being targeted by the QFCRA through special licences granted for foundations and investment clubs, in the former case giving legal personhood to the foundation and, in the latter, allowing for groups of up to 15 individuals to invest together without requiring licencing, the reports said.
“WIDER OWNERSHIP OUTSIDE THE FAMILY BUSINESS WILL FURTHER INCREASE THE RETAIL AND INSTITUTIONAL INVESTOR’S INTEREST AND OVERALL LIQUIDITY IN THE MARKET.” M R RAGHU Head of Research Kuwait Financial Center (Markaz) & Managing Director of Marmore Mena Intelligence Kuwait
“TAKING AN IN-DEPTH LOOK AT WEALTH DISTRIBUTION, QATAR NON-INVESTIBLE ASSETS ARE EXPECTED TO INCREASE AT A CAGR OF 23% IN THE NEXT FIVE YEARS, WHILE INVESTIBLE WEALTH GROWTH IS PROJECTED TO ACCELERATE AT A CAGR OF 7%.” MARKUS MASSI Senior Partner & Managing Director BCG Financial Services Practices Middle East
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business > Bottom Line
HOW TO CONDUCT AN EFFECTIVE JOB SEARCH HOW CAN YOU ARRANGE YOUR WAYWARD PAST INTO A COHESIVE CV THAT WILL WIN YOU THE MOST COVETED OF PRIZES: THE INTERVIEW? AND HOW CAN YOU THEN CONDUCT YOURSELF IN THOSE PRECIOUS MINUTES TO MAKE IT TO THE FINISHING LINE?
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here’s still the follow-up and the package negotiations to be pondered over before you can install yourself in the coveted position and order the stationery. Below, the career experts at Bayt.com have identified some key tips to guide you through the job search process:
FOCUS. FOCUS. FOCUS.
Your first task as a jobseeker is to identify your area(s) of interest from the universe of career possibilities out there. In this age of opportunity, it is quite common to be torn between multiple career directions. Many people are unclear about what road to take and what the opportunities are ahead of them, and it is entirely their prerogative to explore different career paths. Approach each search independently and make sure your CV, cover letter and research activities are tailored for the particular search. Once you have one or two well-defined targets, you can hone in on a few select companies/ institutions that excel in the particular area and from there start a dialogue with the companies and search for actual positions.
RESEARCH
Do your homework. Research target companies thoroughly and make sure you understand the relevant industry, the competition, the challenges the company is facing and where it is likely to expand/ change direction in the near future. Refer to industry journals, research newspaper archives, ask for company annual reports
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and marketing materials and look them up on the Internet. Most companies are more than happy to send you information packages and annual reports, so just pick up the phone and ask for information. Leverage the media. Read trade magazines and business sections in local newspapers many of which are available online and can be a rich source of information on the latest industry trends. Also research the requirements of the actual position you are applying for. Do you really understand what responsibilities a financial analyst at an investment bank has or what an account executive at an advertising company does on a day-to-day basis? Asking questions relating to jobs and job descriptions in the chatrooms and forums of online job boards is also a great way to get the inside scoop.
NETWORK
Your best source of information is your circle of friends and family. Most jobs are filled by word-of-mouth referral before they are ever advertised or publicised. Talk to everyone you know including old teachers, family doctors, lawyers, reporters, clergy and neighbours. Make it known that you are in the market and don’t be shy about asking for leads. As part of your networking activities, start building professional relationships. Call up companies and ask to speak to people in the relevant departments. Ask pertinent questions that show you have done your homework and portray you in the best possible light. Try to get an “informational”
interview to learn more about the company and introduce yourself in person. Failing that, always try to get a recommendation of someone else you can talk to in the particular industry. Remember, you are searching for “hidden” positions – those that have not yet been advertised or are still in the human resources pipeline as well as currently advertised positions. Aggressive networking and research should assist you in finding these positions before your competition has even heard of them.
PERFECT YOUR MARKETING KIT
Think of your CV and cover letter as your marketing and introduction kit. They will either open doors to the next stage of the process or eliminate you from the search. Use them to reflect all you have learnt about the industry and position through your research and networking activities. Fine-tune them for the relevant target and make sure they portray you in the best possible light. Finally, make sure they are interesting and well presented. A sound investment at this crucial stage in the job search process will definitely reap rewards; get a professionally done CV and cover letter if you don’t have one. Make sure you have different CVs/cover letters if you are exploring different career options, e.g., marketing and investment banking. Experts at Bayt.com highly recommend attaching a cover letter to every CV to introduce you in a more personal light and highlight your areas of strength and personal skills. A strong or interesting
cover letter may well compensate for a less than relevant CV.
2.
DON’T WING THE INTERVIEW
3.
Interview skills are acquired. There is a fine art to presenting yourself in an attractive, interesting and professional light. Practice makes perfect is extremely applicable at this juncture in the job search process. It is highly recommended that you take the time to prepare for the interview in all the ways described below: 1. Research the company inside and out. Be aware of current events in the industry and any noteworthy news on the competition. 2. Research the position you are targeting. 3. Read a book on interview skills and make sure you have thought of and have answers for all the possible questions. 4. If you have little interview experience, practice with a friend. Once you are firmly ensconced in the interview chair, a few pointers to alleviate the stress: • The employer may be just as nervous and stressed as you, especially if they are not an HR person. Try to make their life easier by being pleasant, relaxed and proactive. Imagining yourself in their shoes trying to balance a day’s work with the demands of numerous interviews should make you feel more confident and in control. • Remember, you are interviewing them as well. This may well be the wrong position/culture/team for you. Ask lots of questions that reflect you know the company and know what you are looking for. • Employers like to work with people they like! Compensate for a less than stellar track record by emphasising your enthusiasm, willingness to learn, professionalism and personal qualities. Aim to appeal to the employer’s human as well as professional side.
PERSISTENCE PAYS
Employers want enthusiastic employees. Persistence with the follow-up indicates you mean business and are genuinely interested in the company/ position. Follow up at every stage of the process: 1. After you mail your CV and cover letter, call to confirm receipt. You may at this point ask for an interview.
4.
5.
Call again if you do not hear from the employer and use this opportunity to again ask for an interview. Follow up after the Interview with an immediate thank-you letter. Allow some time to pass and then follow up with phone calls until you secure the job. Ask questions at this stage like “Is there any other information you would like to know about me” or “I would like to send you some samples of my work” or “I read in the news yesterday that your company was xyz, etc.” Your goal is to keep the dialogue going until you secure the job! Don’t forget the thank you. Thank the employer sincerely and professionally whenever you can: for their time on the phone, for any written materials they send you, for the interview and for every follow-up from their side. Even if you do not secure the job, you will be remembered in a positive light and may well be called again the next time there is an opportunity. It helps to remember that everyone you meet in the job search process is a potential client or future employer.
DON’T JUMP THE FINISHING LINE
It is highly recommended that you make sure you have soundly crossed the finishing line. 1. Get the offer in writing. Many a verbal offer has gone up in smoke. 2. Negotiate the package. Now is the time to ask for more. An employer expects you to negotiate so don’t let him down. Ask for more pay and then maybe settle for additional perks such as club memberships, house allowance, car allowance insurance, educational assistance, etc. 3. Enquire about career progression. This is a good time to ask for a guaranteed bonus or a raise after x months providing you meet a required set of criteria, etc. Try to have pay milestones included in the contract. 4. If you are an expat, you should be entitled to moving costs and airline tickets home once a year in addition to house, car and schooling allowances. Make sure you have them all in writing.
IT ISN’T OVER
Your career is an ongoing learning and growth process. You will constantly be facing challenges, whether they be
technical, financial, client-related, competitor-driven or simply office politics. Your success depends on your flexibility and your willingness and ability to continue to grow and adapt to the challenges of a dynamic market place. Arm yourself with all the tools you need to learn and grow. Ongoing education through industry seminars and night courses, independent reading, networking activities, and special help in those areas where you are having difficulties (e.g., technical, quantitative, interpersonal) will strengthen you and make you an ever-qualified candidate in today’s marketplace.
“AS PART OF YOUR NETWORKING ACTIVITIES, START BUILDING PROFESSIONAL RELATIONSHIPS. CALL UP COMPANIES AND ASK TO SPEAK TO PEOPLE IN THE RELEVANT DEPARTMENTS. ASK PERTINENT QUESTIONS THAT SHOW YOU HAVE DONE YOUR HOMEWORK AND PORTRAY YOU IN THE BEST POSSIBLE LIGHT.”
ABOUT BAYT.COM Bayt.com is the #1 job site in the Middle East with more than 40,000 employers and over 35,700,000 registered job seekers from across the Middle East, North Africa and the globe, representing all industries, nationalities and career levels. Post a job or find jobs on www.bayt.com today and access the leading resource for job seekers and employers in the region. 41 > QATAR TODAY > SEPETMBER 2019
expert > Tag This
“WAR NOT AN OPTION” BY DR MAMDOUH G. SALAMEH
ALMOST 17 YEARS AGO, A GROUP OF NEOCONSERVATIVE HAWKS IN THE US – AMONG THEM JOHN BOLTON, US PRESIDENT DONALD TRUMP’S CURRENT NATIONAL SECURITY ADVISER – PERSUADED PRESIDENT GEORGE W. BUSH TO MOUNT A QUICK INVASION OF IRAQ BECAUSE, THEY ALLEGED, IT HAD “WEAPONS OF MASS DESTRUCTION” IN ITS POSSESSION.
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hat decision, based on dubious intelligence and taken against the advice of many of America’s closest allies, triggered a refugee crisis, destabilised the entire Middle East and cost the global economy an estimated QR45.05 trillion ($12.377 trillion) of which the US economy’s share was QR22.93 trillion ($6.3 trillion), according to my research paper titled “The Oil Price Rise Factor in the Iraq War: A Macroeconomic Assessment” that was published by the United States Association for Energy Economics on 4 June 2008. Moreover, nearly 5,000 Americans lost their lives in Iraq and hundreds of thousands more injured and due to receive lifetime disability compensation. Despite the staggering costs, some hawks such as John Bolton are again
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urging the United States to go to war with Iran, thus plunging the Gulf region in a destructive war which could cost the global economy far more than the invasion of Iraq and leave the Gulf countries’ economies in tatters. Furthermore, such a war would forever destroy US national interests in the Gulf region and would strengthen the most virulently anti-American elements of Iranian society and suppress those who favour détente. But despite efforts by John Bolton and Israel’s Prime Minister Binyamin Netanyahu to push the United States into war with Iran, war is neither an option for Iran nor for the United States. Still, a war could happen by accident rather than by design. Iran, for example, may see the US naval build-up in the region partly as bluster and partly as an effort at intimidation in what
it sees as its own backyard – intimidation that it is not disposed to accept.
Iran can be dangerous
Iran is not seeking a war with the United States. However, there is a real danger that, if attacked or if its crude oil exports were prevented from passing through the Strait of Hormuz, Iran could block or mine the Strait of Hormuz so as to disrupt other Gulf countries’ oil exports. Moreover, it could launch a kind of hybrid war – both directly and through its proxies – carrying out sporadic and widely dispersed attacks on shipping and other targets, sending oil prices, shipping costs and insurance premiums steeply up and perhaps encouraging further punitive responses. Iran’s Supreme Leader Ayatollah Ali Khamenei said on 14 May 2019 that Iran would do its utmost to avoid war with the
US while relentlessly pursuing its ascent as a prominent regional power. He added that there would be no further negotiations with the US, describing any such negotiations as “toxic” and explaining that the US seeks to take Iran’s strengths away; meaning to have Iran unilaterally “surrender its defensive power” and “its strategic regional influence.” A blocking of the Strait of Hormuz would inflict great damage on the economies of the Gulf Cooperation Council Countries (GCC). Through this most vital chokepoint in the world, nearly 19 million barrels per day (MBD) of oil traffic, a fifth of the global oil trade and a third of global LNG supplies pass every day. Oil exports from Iraq, Iran, Kuwait, Bahrain, Qatar (including large volumes of Qatari LNG exports), the UAE and Saudi Arabia must pass through the Strait (see map). All GCC countries and also Iraq and Iran with the exception of the UAE, Oman and to some extent Saudi Arabia will be seriously affected by any closure of the Strait of Hormuz. Their oil and LNG exports will be disrupted and their revenues will be halted throughout the period of the disruption. This will inflict heavy damage on their oil-dependent economies. Saudi Arabia and the UAE each have pipelines that have the capability to circumvent the Strait of Hormuz, but by and large these options are operating way below capacity. Saudi Arabia has the Petroline (or East-West Pipeline), which runs across Saudi Arabia from the oil fields in the east to the Red Sea in the west at the Yanbu Port. However, were Iran to disable the Saudi loading terminal of RasTannura, the world’s largest, it could easily disrupt the flow of oil through the Petroline. The recent attacks on Saudi and UAE oil installations and tankers show how easy it is to inflict serious damage on major oil installations like RasTannura. Still, war is not an option for the United States either because the damage to US national interests in the Middle East and its economy will be unimaginable, causing oil prices to surge to more than $130 a barrel. That would exacerbate the US budget deficit and add significantly to the QR80.08 trillion ($22 trillion) of its outstanding debts. It could also cost President Donald Trump the election for a second term in office.
comply with US sanctions against Iran, China’s overwhelming dominance in the Asia-Pacific region and its sovereignty claim over 90% of the South China Sea, the new order in the 21st century and, above all, fear of the US losing its unipolar status. Were China to be prevented by hiking US tariffs from exporting some QR2.92 trillion ($800 billion) worth of goods annually to the United States, it can sell them somewhere else. However, for the United States, to replace these imports with far more expensive imports from Japan, South Korea and the European Union (EU) could lead to rising costs for US customers, higher domestic inflation, a widening budget deficit and raising US current outstanding debts of QR80.08 trillion by at least 2.35%. If, however, President Trump continues escalating the trade war and tries to push China into a corner, he will find that China has very powerful weapons in its arsenal capable of inflicting real harm on the US economy and the dollar. Some of these weapons have been dubbed as China’s nuclear options. The first is for China to retaliate by offloading its holdings of US Treasury bills estimated at QR4.73 trillion ($1.3 trillion). That will immediately cause a steep devaluation of the dollar, thus leading to a serious exacerbation of both the US budget and US outstanding debts. The second weapon is for China to impose an embargo on the supply of rare earth minerals to the United States. That could potentially cripple large swathes of US industry such as smartphones, turbines, lasers, missiles, advanced weapon sensors, stealth technology and jamming technology ,to name but a few. By the time the United States has found alternative supplies, the damage would have been done. In view of the above, President Trump has no alternative but to end his trade war against China because it is hurting the US economy far more than China’s. This is because China’s economy, with an estimated GDP of QR100.1 trillion ($27.5 trillion) in 2019, is 28% larger than the United States’ at QR78.26 trillion ($21.5 trillion) based on purchasing power parity (PPP) and far more integrated in the global trade system than America’s thanks to China’s Belt and Road Initiative. That is why China’s economy can take more punishment than that of America.
The US-China Trade War
China shows mettle
President Trump has a far bigger war to worry about, namely the trade war with China. The escalating trade war has been casting dark clouds over the global economy, creating uncertainty and depressing the global demand for oil and therefore oil prices. However, the trade war is not principally about oil or China’s trade surplus and alleged Chinese malpractices. It is about the petroyuan undermining the supremacy of the petrodollar and by extension the US financial system, Taiwan, the refusal by China to
China has shown its mettle during the trade war when President Trump blinked first by easing restrictions on Huawei, the Chinese tech giant, in a bid to get trade talks moving again. Washington had earlier announced a ban that restricts Huawei’s ability to do business with US firms due to national security concerns. And while China could emerge the less hurt from a continuation of the trade war, there could be no winners. Both titans will be losers with the global economy the biggest loser by far.
A BLOCKING OF THE STRAIT OF HORMUZ WOULD INFLICT GREAT DAMAGE ON THE ECONOMIES OF THE GULF COOPERATION COUNCIL COUNTRIES (GCC). THROUGH THIS MOST VITAL CHOKEPOINT IN THE WORLD, NEARLY 19 MILLION BARRELS PER DAY (MBD) OF OIL TRAFFIC, A FIFTH OF THE GLOBAL OIL TRADE AND A THIRD OF GLOBAL LNG SUPPLIES PASS EVERY DAY. DR MAMDOUH G. SALAMEH International Oil Economist
(Dr Mamdouh G. Salameh is an international oil economist. He is one of the world’s leading experts on oil. He is also a visiting professor of energy economics at the ESCP Europe Business School in London). 43 > QATAR TODAY > SEPETMBER 2019
business > Tag This
US-IRAN CONFLICT AND THE SHIPPING MARKETS BY ADRIAN ECONOMAKIS Key LNG Exporters
Cargo per Month M Tons
12 10 8 6 4 2 0
2013
2014
2015
2016
2017
2018
East Coast Australia
West Africa
Gulf of Mexico
West Coast Australia
Middle East Gulf
South East Asia
2019
Source: VesselsValue July 2019
TENSIONS WITH IRAN REMAIN HIGH, AND GEOPOLITICAL RISK AND UNCERTAINTY ARE RISING. A CAULDRON OF UNPREDICTABLE EVENTS COULD LEAD TO A CONFLICT THAT RATIONAL ACTORS WOULD NOT NORMALLY UNDERTAKE. THE FOLLOWING WILL BREAK DOWN THE IMPACT TO EACH OF THE KEY SHIPPING MARKET SEGMENTS: TANKERS, BULKERS, GAS (LPG & LNG) AND CONTAINER SHIPS.
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ankers are the most important segment in terms of the value at risk, but the impact to other emerging trade flows, particularly LNG, should not be understated. The oil markets are mature and can adapt, while the rapidly growing LNG markets are at a more sensitive point in their development. It is important to remember that the energy markets have weathered many severe events over the past 50 years, and many conflicts of lesser intensity. The geographic proximity of Iran to the Strait of Hormuz makes it an attractive story point, but the reality of force projection in the modern world is more complex. The ability to target assets beyond a limited shore-based reach has grown, and Iran’s strategic options for counter strikes have expanded beyond a simplistic
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view of waterway closure in one location. Modern navies can mitigate some threats more easily, while new methods of power projection present far more complicated challenges. The Strait of Hormuz may not be the obvious strategic target it once was as the conflict progresses in other strategic spheres. The historical precedents during the Iran-Iraq conflict in the 1980s with more direct attacks on tankers showed that the commercial shipping markets were able to adapt and move cargo. Regardless of events, which will surely unfold in unpredictable ways, it is important to understand the flow of commercial vessels through this key waterway. Shortterm disruptions would be inevitable but should be short-lived. Any limitation to these key trade flows would be met with a
swift response from other national actors to maintain commerce.
Tankers
Looking at cargo volumes tells a mixed story for this year. Early in 2019, the cargo flows were above the five-year trend line but have since moderated downwards. Some of this “loss” in cargo volume is due to ships masking their movement as well as to softening demand from some key regions. China is still lifting a large number of cargoes. Much of the loss is coming from exports to the United States, which has become more of a production hub over the past decade, reducing the need for imports. It is unclear whether the reduced US dependence on crude oil sourced from the Middle East Gulf has reduced the US’s interests in maintaining a free flow of commodities out of the region.
The Very Large Crude Carrier (VLCC) market remains under pressure because there are too many ships. This is not to minimise the importance of export disruptions, but tanker earnings correlate more strongly with the total tonnage on the water as opposed to the number of cargoes available. VesselsValue has been highlighting the risk of tanker oversupply for over a year now as the number of VLCCs being delivered into the market shot upwards. The number of ships on the water has risen from 726 at the start of 2018 up to the current level of 767, while there were only 642 VLCCs in service at the start of 2016. Tanker rates will remain under pressure until older tonnage is removed from service. Order discipline on the supply side is being enforced by tighter availability of capital and a rising replacement cost for ships.
and RO-RO trade is less important in the context of global trade. Dry bulk exports from the region make up about three percent of the global exports by weight. However, it is very relevant to the population centres dependent on the port hubs that service them. The war risk cost is translating into higher surcharges on containers moving into the region that will ultimately be passed on to consumers. On dry bulk carriers, there are more imports into the Middle East Gulf than there are exports, although this gap has been narrowing recently. Rising incremental costs for shipping may depress the economics of some exports from the region. The container trade in the region is a mix of various vessel sizes, with 610 vessels making 6,371 port calls year to date across the Middle East Gulf.
LNG
Oil Price and Bunkers
Natural gas will play a more pivotal role in the global energy mix for the next several decades, and this is translating into a surge in new trade patterns for LNG carriers, many of which originate in the Middle East Gulf. This region remains the most important in terms of tons being exported; however, the world has changed rapidly as production and liquefaction plants have expanded in other regions. There has been a surge in LNG export volumes from Australia, South East Asia and the US Gulf as demand driven by coal to gas switching accelerates in many countries and new midstream infrastructure develops, enabling further consumption in demand centres. The LNG markets are moving away from decade-long contracts, but the perception of supply disruption risks would figure into shorter-term contracts, which still may be several years, and be used as a negotiating point in pricing discussions. Regions of perceived stability, such as the US and Australia, may gain market share with buyers as both continue to offer new supplies to the market without the risk of Hormuz transits. The impacts of war risk are more subtle in the LNG markets, but certainly no less important as changes in trade flows will be slower to revert to normal than other spaces such as crude and clean product tankers. LPG exports from the Middle East Gulf have held steady in the face of increasing competition from US exporters. Direct exports from Iran of LPG products are regionally important, but the main impact of a war with Iran would be the disruption of exports from other hubs in the Middle East Gulf.
Bulkers, Containerships and Vehicle Carriers
The Middle East Gulf dry bulk, container
Higher oil prices mean more expensive bunker bills for ships, and the price of fuel accounts for more than 50 percent of the cost of shipping. A direct conflict would further disrupt oil exports from all Arabian producers and in turn lead to more price increases. Higher bunker prices will place an additional cost on the shipment of any goods moved by ships. The oil markets have taken the loss of Iranian barrels in their stride so far. The price of most benchmarks has been more influenced by the global economy than the loss of available barrels for some buyers. Still, the market inefficiencies created by sanctions appears to be pushing the overpricing trend higher. Regardless of the direct impact of an Iranian conflict to shipping lanes, oil prices would rise and ship owners would pay more to operate their vessels. This is in addition to any of the additional costs being driven by compliance with the IMO 2020 regulations, which will begin to have significant impact on the bunker market in the autumn months ahead.
“REGIONS OF PERCEIVED STABILITY, SUCH AS THE US AND AUSTRALIA, MAY GAIN MARKET SHARE WITH BUYERS AS BOTH CONTINUE TO OFFER NEW SUPPLIES TO THE MARKET WITHOUT THE RISK OF HORMUZ TRANSITS.” ADRIAN ECONOMAKIS Chief Operations Officer VesselsValue
Conclusion
The impact of the current levels of tension has had a modest impact on shipping at worst, nudging up some costs such as insurance and security, and impacted a handful of owners. Disruptions will continue, but overall there has been no systemic response yet in any of the shipping markets that indicate a suspension of trade as a serious risk. Shipping, as usual, is staring into the dark maw of its traditional and more mundane enemy in many segments – low earnings due to too many ships. The overall impact of an expanded conflict with Iran would be negative in the short term, but the market would rebound as the dispute resolved.
(Adrian Economakis is the Chief Operations Officer of VesselsValue, a leading online valuation, AIS and market intelligence service for the maritime and offshore sectors)
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affairs > Technology
EXPERIMENTATIONS HELP INNOVATION ECOSYSTEMS EMERGE MAJOR ADVANCES IN COMPLEX TECHNOLOGIES REQUIRE THE COOPERATION OF A BROAD RANGE OF PARTIES – A WHOLE BUSINESS ECOSYSTEM. PROFESSORS SIHEM BEN MAHMOUD-JOUINI (HEC PARIS) AND FLORENCE CHARUE-DUBOC (ECOLE POLYTECHNIQUE PARIS) USED THE CASE OF THE NASCENT HYDROGEN ENERGY ECOSYSTEM TO INVESTIGATE HOW EXPERIMENTATION CAN NOT ONLY BE A NATURAL STEP IN THE DEVELOPMENT OF A BUSINESS SOLUTION BUT ALSO CONTRIBUTE TO THE EMERGENCE AND CONSOLIDATION OF THE ECOSYSTEM ITSELF.
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e are fast moving towards a world where innovations increasingly are the brainchild not of a single business but of several distinct organisations working together. An example of a field where lots of different players must collaborate to create a shared solution is that of sustainable energy.
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Until now, business research in the area of innovation ecosystems tended towards investigating the rules, incentives and risks surrounding these ecosystems. To date there has been little research on the emergence of the ecosystems that come about when an innovation requires the cooperation of players across a diverse set of fields.
Example of an innovation ecosystem
What is an emerging innovation ecosystem? It is a situation where the perimeter of the overall innovation is not yet determined, the contributors to this offer are not all identified, and the rules between these contributors are still not fully defined. In order to study an emerging innovation ecosystem we investigated the emerging ecosystem of hydrogen energy. It is a typical situation of a wide number of
affairs > technology “FIRMS THAT WANT TO BE PART OF AN INNOVATION ECOSYSTEM FACE A LOT OF UNCERTAINTY BECAUSE THEY ARE DEALING WITH A BRAND-NEW INNOVATION.” players from a variety of different sectors that must cooperate. This included the producers and the packagers of hydrogen, the fuel cell producers and their suppliers that transform the hydrogen in electricity, the producers of the devices that will use this electricity created and the public authorities who will provide the regulation for the transportation and safe use of the hydrogen.
Complete Solution Experiments
Firms that want to be part of an innovation ecosystem face a lot of uncertainty because they are dealing with a brandnew innovation. This means they lack a lot of knowledge about (i) the context of use of the innovation and its impact on the performance; (ii) the performance valued by the customers; and (iii) the costs and the exploitation conditions of the innovation. Experimentation is a way to generate this knowledge. Indeed, the literature on innovation has shown that experimentation is critical because it creates knowledge and reduces uncertainty. We wanted to investigate the case of innovation that involves players from several different fields. Over the course of our 18-month observation we identified four key lessons about what we called a “complete solution experiment” (CSE) and factors to observe in order to generate knowledge and reduce uncertainty for all the players.
of the ecosystemic innovation. Therefore it has to involve a complete solution with all the components. The solution is refined and representative of an industrial offer. This means the CSE cannot be done too early on in the exploration and innovation process. In order to generate useful knowledge, the CSE has to involve real customers willing to work with a prototype in real conditions over a significant time period and to give feedback. For a CSE to be successful, from the beginning you have to be transparent on the rules of how the knowledge generated by the experiment will be used and how the players will be coordinated. The main value of the experiment is the knowledge produced and all of the players in the game will have a stake in this outcome. To avoid conflict later or confusion during the process, it’s important that the various players are clear from the outset on how they will work together. We show that the emergence of an innovation ecosystem is progressive and that each experiment enables the development of the innovation as well as the ecosystem.
FLORENCE CHARUE-DUBOC Professor Management Ecole Polytechnique Paris
SIHEM BEN MAHMOUD-JOUINI Associate Professor Informations Systems and Operations Management HEC Paris
Involve many players
For an experiment to generate knowledge on the offer as well as on the ecosystem, it should involve players spread across the entire pipeline of the innovation. While the list of companies involved in the experimentation will probably not be the same as those who ultimately make up the final partnership, they should represent all those organisations that are required to bring the innovation to market.
Don’t experiment too early
The experimentation is supposed to generate knowledge on the performances 47 > QATAR TODAY > SEPETMBER 2019
spotlight > Education
EDUCATION VITAL TO ACHIEVE QNV GOALS RECOGNISING THAT EDUCATION PLAYS AN IMPORTANT ROLE IN ACHIEVING THE TARGETS SET IN THE QATAR NATIONAL VISION 2030 FOR A PROGRESSIVE SOCIETY, THE GOVERNMENT HAS BEEN DEVELOPING A KNOWLEDGE-BASED ECONOMY TO REDUCE ITS DEPENDENCE ON HYDROCARBON REVENUES IN THE YEARS TO COME.
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n Qatar, the education system is managed by the Ministry of Education and Higher Education with the latter supervising the system at all levels – from pre-school to higher education – regulating the education policy and playing a vital role in the execution of educational reforms in the country. Broadly, the education system is divided into two segments. While basic education covers pre-school, primary and secondary education which is free of charge and compulsory for all Qatari nationals, the higher education takes
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care of undergraduate and post-graduate education. Under no circumstances has the government compromised on the quality of education being imparted to the students and, by maintaining its high standards, Qatar was ranked among the highest in almost all education parameters for 20172018 in the region. Qatar’s educational institutions have been rated as some of the best in the region as well as in the world because of the government’s decision to open several international schools and top-notch universities in the
country. This has, in turn, enabled both Qatari and expat students to access highquality education.
Qatar’s distinction
In the World Economic Forum’s Arab World Competitiveness Report for 2017-2018, Qatar has been ranked 1st along with the UAE in the Middle East for its quality of higher education and training (which includes quality, quantity and on-the-job training). Qatar also has the distinction of topping the list of Arab countries as far as innovation is concerned ranking 4th in the category of health and primary education.
Among the schools in Qatar, some are government-funded (independent), some are international schools, and some are community and private Arabic schools. Although independent schools account for nearly half of the total schools operating in the country, the number of international schools has increased in the past few years. As far as universities are concerned, Education City is the higher education hub and a major centre for research activities and it includes two state-run post-secondary education institutions – Qatar University and Qatar Community College – besides eight international Qatar Foundation-partnered institutions, two Qatari universities and several colleges.
Highest performer
Dubai-based Alpen Capital, which released a report entitled “GCC Education Industry” in November 2018, rated Qatar as the “highest performer” in the primary and higher education segments compared with other GCC nations.
QATAR HAS PRIORITISED THE DEVELOPMENT OF THE EDUCATION SECTOR, WHICH IS IMPORTANT FOR ACHIEVING ECONOMIC DIVERSIFICATION AND THE PLAN TO BECOME AN EDUCATION HUB OF THE REGION. THE SECTOR HAS BEEN EXPANDING AT A RAPID PACE TO MEET THE RISING DEMAND FROM NATIONALS AND EXPATRIATES ON THE BACK OF GOVERNMENT-LED GROWTH ACROSS ECONOMIC SECTORS.
“Qatar is also witnessing a shift towards increasing preference for private education, which is resulting in an influx of international institutions. Such institutions offer diverse curricula and are particularly beneficial for the expat population,” Alpen Capital’s report said. Total student enrollments in Qatar grew at a CAGR of 8% between 2011 and 2016, witnessing the highest growth across the GCC. The overall Gross Enrollment Ratio (GER) in the country stood at 62.2% in 2016, driven by high enrolment rates in the primary and secondary segments. “Between 2011 and 2016, pre-primary schools witnessed a CAGR of 9.3%. This can be attributed to the growing awareness among nationals of the importance of preprimary education. Although education is not mandatory for children below the age of three years, the segment reported a GER of 60.1% in 2016,” the report added.
“The progress made within Qatar’s education sector has attracted the attention of private sector participants, which has led to a number of private schools establishing a base across the country to meet the growing demand across the K-12 segments,” the report said. Qatar has prioritised the development of the education sector, which is important for achieving economic diversification and the plan to become an education hub of the region. The sector has been expanding at a rapid pace to meet the rising demand from nationals and expatriates on the back of government-led growth across economic sectors.
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spotlight > education
NEW ACADEMIC YEAR OFFERS NEW HOPE
WITH THE END OF SUMMER APPROACHING FAST, IT IS TIME FOR “BACK TO SCHOOL” FOR THE STUDENTS IN THE COUNTRY. THE EDUCATIONAL INSTITUTIONS RE-OPENED IN THE LAST WEEK OF AUGUST FOR THE ACADEMIC YEAR 2019-2020 AND MORE THAN 323,251 STUDENTS AND 34,218 TEACHERS HAVE REJOINED SCHOOLS IN THE GOVERNMENT AND PRIVATE SCHOOLS ACROSS QATAR. 50 > QATAR TODAY > SEPETMBER 2019
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or its part, the Ministry of Education and Higher Education has put in place all arrangements to ensure another year of academic success for the education sector. While the curriculum was developed well in advance, the teachers were given training on quality enhancement and performance evaluation with the ultimate goal of having successful and skilled students. According to the Minister of Education and Higher Education, HE Dr. Mohammed bin Abdul Wahed Ali Al Hammadi, the updated learning resources aimed to equip every student with information and critical thinking in order to make the transition to university education and then the labour
market successfully. Detailing the steps taken for the smooth operation of the academic year, he said that the ministry has provided 2,146 school buses to government schools and recruited 646 teachers, 57 Qatari administrative candidates and 91 workers this year. The minister pointed out that the ministry has approved only 29 applications out of 128 schools that applied for fee increases which ranged between 5-7%. The ministry has also increased to 99 the number of private schools participating in the educational voucher system to benefit over 20,000 students in these institutions, and around 3,600 students have been transferred from
private to government schools this year, the minister added.
Primary investment
At a separate function held a few days before the start of the academic year, the minister indicated the government’s seriousness in developing the education sector, saying that education remained the primary investment for Qatar given its investment in human capital that makes great returns in all fields. Speaking at the annual reception ceremony held for new Qatari teachers, he praised the new teachers for joining the profession, stressing that it is one of the main pillars of Qatar’s progress. “It will be the responsibility of all teachers to maintain quality and they should prepare strong cadres that can provide great services to Qatar in many fields,” he said. In the 2019-2020 academic year some 219 teachers from Qatar have joined public schools and the ministry’s “Tomouh” programme has sent 521 students to the College of Education at Qatar University. They include 420 Qataris and the rest are expats and residents. The ministry has opened five new schools enclose in parentheses and they include two secondary schools in Al Wakra and Al-a’b, and a primary school in Al Murra. The remaining two are elementary schools for boys at the fifth and sixth levels in the Old Airport and Muaither South areas, which are expected to provide 3,168 seats. In all, as many as 14,218 teachers are available in all public schools. While there are 68 kindergartens including 25 new schools which offer 15,000 seats, and 208 public schools in Qatar, as many as 8,173 students are enrolled in the kindergarten and another 115,078 have joined the public schools. Besides, two additional schools for children with special needs have become functional during this academic year (2019-20). The ministry, which supervises the private schools in the country, has set high standards for recruitment of teachers to ensure quality education for the students. There are 310 private schools in the country in are over 200,000 students are enrolled and 20,000 teachers and administrators have been employed to run these institutions. Another major initiative has been opening a Community College in Qatar, which offers courses to cater to the needs of the country’s labour market. The college has been offering 17 educational programmes, including 12 associate diploma programmes and five bachelor programmes in various fields.
Higher education
The Undersecretary for Higher Education Affairs at the Ministry of Education and Higher Education, Dr Khalid Al Ali, said
the ministry has drawn up plans to open new universities, including one Arab, one Asian and one German to meet the growing demand for such institutions. The proposed universities will increase diversity and offer more options for the students. Presently, there are 30 higher education institutions in Qatar compared with 16 five years ago. Qatar currently has seven national higher education institutions, including Qatar University and Hamad Bin Khalifa University, seven American universities, eight British institutions, two each of French and Canadian institutions, one Dutch university and one Spanish college. The government’s commitment to develop the education sector was evident when it allocated QR19.2 billion ($5.3 billion) in its annual budget in 2019, representing around 9.3% of total expenditure. According to the World Bank, Qatar’s education expenditure accounts for approximately 3.3% of GDP. Some of the projects that were taken up with the budgetary allocation included new facilities for medicine, pharmacology, engineering, law, and establishment of the Community College of Qatar among others.
Education City
Education City, which was established in 1995 on 1,012 hectares of land, is managed by Qatar Foundation (QF), a non-profit organisation and is home to six US universities, including Weill Cornell Medicine-Qatar, Georgetown University School of Foreign Service, Texas A&M University at Qatar (TAMUQ) for engineering, Northwestern University in Qatar for journalism, Carnegie Mellon University in Qatar (CMU-Q) for computer science and business, and Virginia Commonwealth University in Qatar (VCUQ) for design. Even educational and research institutions such as the QNRF and Hamad Bin Khalifa University (HBKU), a public higher education institution founded in 2010, are also housed on the Education City campus. Qatar University, another major higher education institution in the Middle East, was started in 1973 and has nine colleges with over 20,000 students pursuing different courses.
IB Schools in Qatar
The first-ever IB World School in Qatar was started in 2002; There are 18 such schools currently offering one or more of four IB programmes. While Primary Year Programmes are offered in 10 schools, the Middle Year Programmes are being offered in nine schools and Diploma Programmes by 16 schools. The medium of instruction offered courses are in English, French, German and in other languages in these schools. Besides, two universities recognise the IB programmes
“IT WILL BE THE RESPONSIBILITY OF ALL TEACHERS TO MAINTAIN QUALITY AND THEY SHOULD PREPARE STRONG CADRES THAT CAN PROVIDE GREAT SERVICES TO QATAR IN MANY FIELDS.” HE DR. MOHAMMED BIN ABDUL WAHED ALI AL HAMMADI Minister of Education and Higher Education State of Qatar
and offer admissions to students in their various courses.
Memorandum of Understanding signed
Qatar Foundation (QF) and the Ministry of Education and Higher Education signed a memorandum of understanding to further enhance the calibre of pre-university education in the country in February this year. The agreement was signed by QF vice chairperson and CEO HE Sheikha Hind bint Hamad Al Thani, and HE Dr Mohamed Abdul Wahed Al Hammadi. The agreement, will harness the experience and expertise of QF and the ministry to maintain and elevate Qatar’s education services, outputs and performance at pre-university level, as well as the nation’s standing in global education rankings. The areas of focus will include early education and specialised education provision; nurturing and enhancing the skills of those working within the education sector; and curriculum and education policy development. The two parties will also collaborate to jointly establish activities and events that diversify and enrich students’ educational experiences, and to develop initiatives that encourage student innovation. 51 > QATAR TODAY > SEPETMBER 2019
spotlight > education
Sustaining a Legacy of Academic Excellence
Your story begins here... www.asd.sch.qa
@TheASDoha
THE AMERICAN SCHOOL OF DOHA: A LEGACY OF ACADEMIC EXCELLENCE THE AMERICAN SCHOOL OF DOHA (ASD) IS AN INDEPENDENT, U.S. ACCREDITED, COLLEGE PREPARATORY SCHOOL OFFERING AN AMERICAN CURRICULUM, FROM PRE-K TO GRADE 12, FOR A MULTICULTURAL STUDENT BODY AND COMMUNITY SEEKING A COMPREHENSIVE, CARING, AMERICAN STANDARDS-BASED CURRICULUM PROGRAM IN AN INTERNATIONAL SETTING. 52 > QATAR TODAY > SEPETMBER 2019
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ast year, ASD celebrated its 30 year anniversary. ASD began its journey of quality education in a small villa in 1988, and by 1996 had its first graduating class. In 1998, ASD opened its new campus in Al Bustan. From 2013-2017, ASD underwent a $35M Campus Improvement Project to increase capacity and improve facilities across the entire school. This project maximized enrollment of up to 2,250 students from Pre-K to grade 12. The growth achieved from the expansion project improved the school’s ability to be a progressive school with impressive facilities and varied programs that include educational, sporting, cultural, and social activities on the ASD campus. The
stunning 20+ acre campus is one of the best in Qatar and the region. Throughout the years, ASD has grown into a premier school that inspires its students to achieve academic excellence while becoming positive, active global citizens. This year, the academic program has been a forerunner in education and curriculum development with exceptional Advanced Placement (AP) and International Baccalaureate Diploma Program (IB) exam results. Students in the AP program at ASD recorded impressive results in summer 2019, with 85% of students achieving a 3 or higher resulting in an historical school high average exam score of 3.64. All 17 AP courses achieved above
the US and Global averages for the first time in ASD history. And 2019 marked the first AP Capstone students at ASD. Eight of the AP students scored 3 or higher in 5 AP courses in addition to completing extended essay and seminar courses. To parallel the outstanding AP results, the IB Diploma students achieved an average score of 35 (of 45 possible) points, the highest score in ASD’s history, and 5 points higher than the world average. Further, ASD achieved its highest IB Diploma pass rate of 98%, with 34% of students earning 37 points or higher, and 16% earning 40 points or higher. ASD’s High School is the only school in Qatar offering both Advanced Placement (AP) courses and the International Baccalaureate (IB) Diploma. This year ASD introduced over 30 new faculty and staff (of a total of 350 staff ) from around the globe to enrich not only the students but also the ASD community as a whole. Among our new Dragons is Dr. Aaron W. Jones, one of our new HS counselors who joined us from Philadelphia. Dr. Jones received his Bachelor’s Degree and a Master’s of Science in Counseling at Villanova University and continued his Doctorate in Educational Leadership at Saint Joseph’s University. Dr. Jones “encourages students to embark on a mindful and explorative journey through high school which will, in turn, prepare them for any post-secondary pursuit.” We also welcomed our new Director of Teaching and Learning this year, Dr. Heather Vlach. Dr. Vlach is joining us from Kodiak Island, Alaska where she served as a DistrictWide Instructional Coordinator. In addition to stateside teaching and learning leadership, Dr. Vlach also brings extensive international school experience. We are excited to have both Dr. Jones and Dr. Vlach, along with other new faculty and staff, join the ASD community. The ASD values of Respect, Honesty, Responsibility, and Compassion guide our actions and promote a culture of inclusiveness and engagement. The focus on student learning in a safe, secure environment ensures that each of our students is encouraged to reach his or her potential every day. ASD aims to challenge its students to become positive, active global citizens who, inspired by their understanding of our community, become agents of positive change to improve our world. We look forward to our 31st year of trust, excellence and community here at ASD. 53 > QATAR TODAY > SEPETMBER 2019
spotlight > education
CHOOSING A SCHOOL IN QATAR
IN MANY RESPECTS, CHOOSING THE RIGHT SCHOOL FOR YOUR CHILD IS ONE OF THE MOST IMPORTANT AND DAUNTING DECISIONS THAT PARENTS HAVE TO MAKE, ESPECIALLY HERE IN DOHA WHERE THERE ARE SO MANY SCHOOLS JOSTLING FOR ATTENTION, ALL APPARENTLY HAVING UNIQUE FEATURES, AND MANY CALLING THEMSELVES “INTERNATIONAL”. I HOPE TO HELP PARENTS IN THEIR CHOICE BY FOCUSING ON THE MOST IMPORTANT FEATURES TO LOOK FOR. BY SIMON PORTER
Compass International School Doha
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eachers: Bill Clinton’s advisors famously helped Bill focus by telling him “It’s the economy, stupid”. For parents, without a doubt, the most important thing to focus on is “It’s the teachers!” Are the teachers from a wide range of countries? For example, Ireland in particular produces excellent international teachers. What professional development opportunities does the school offer for teachers? For example, does the school sponsor teachers to do masters degrees? Do teachers cooperate with teachers in other schools or indeed teachers in other countries? Does the school allow you to actually talk to teachers when you are being shown around? Do you get to see inside actual classes during a lesson? Do the teachers’ own kids go to the school?
Curriculum:
Research shows that university admission tutors believe the
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International Baccalaureate (IB) is the best curriculum for preparing students for university. IB students are less likely to drop out and are seen by universities as well-rounded students who have the organisational and academic skills to cope with the jump to university education. However, many students find A-levels are better suited to their needs, especially if they have skills that lie in one particular area, such as Science and Maths. Does the school you are looking at offer both to best suit your child?
Ethos: Does the school truly believe that
all children can succeed with support and hardwork, or does it just pay lip service to this? The acid test is to ask whether it sets by “ability” in Mathematics. If it does, it doesn't truly believe every child can be good at Mathematics. Incidentally, most research suggests that “setting” doesn’t work, and in fact harms the progress of most children. Ask how ambitious it will be
for your child.
Outward looking: Does the school have
links with other organisations to enrich their curriculum? Does it have a vibrant music programme? Do the students do STEAM projects highlighting skills in Science, Technology, Engineering, the Arts and Mathematics? Are they at the cutting edge of these developments? Again, many schools will say they include these aspects, but what evidence is there that they are acting on this?
Students: Does the school have a diverse range of students from a variety of backgrounds and countries? If you are looking for an international school, how “international” is it really in terms of its students and teachers? Does it have an international, inclusive curriculum like the International Primary Curriculum, IB or international A-levels?
Compass International School Doha is one of Qatar’s leading schools providing the very best of British and international curricula for over ten years. As part of premium education provider Nord Anglia Education, Compass International School Doha offers your child a truly unique international learning experience. Children aged three to 18 are taught at our four campuses across Doha: Gharaffa, Madinat Khalifa, Rayyan and Themaid. The curricula offered at our campuses include the International Primary Curriculum, English National Curriculum, IGCSE and the International Baccalaureate (IB) Diploma Programme. A-Levels and BTEC vocational programmes will be available in future years at our new Themaid Campus for Years 12 and 13. •
To find out more about one of Qatar’s leading international schools or to apply, please visit www.cisdoha.com or contact Compass International School Doha’s Admissions Team at admissions.cisd@nais.qa for availability in the 2019/20 Academic Year.
Simon Porter, Times Educational Supplement “Subject Genius” and Director of Quality and Staff Development at Compass International School Doha, gives parents a few tips on choosing the right school for their children. 55 > QATAR TODAY > SEPETMBER 2019
spotlight > education
WCM-Q WELCOMES NEW MEDICAL STUDENTS WITH WHITE COAT CEREMONY
WEILL CORNELL MEDICINE – QATAR’S CLASS OF 2023 HAVE DONNED THE WHITE COAT AND STETHOSCOPE OF THE DOCTOR FOR THE FIRST TIME AT A CEREMONY IN FRONT OF FACULTY, FAMILY AND FRIENDS.
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n total, 40 students are starting the four-year medical curriculum, eight of whom are Qatari, and the white coat is symbolic of the humanity, perseverance and academic excellence that they will need as a physician.
year and is a memorable and significant milestone for the trainee doctors.
The students will now follow the same curriculum as that offered at Weill Cornell Medicine – New York and will be taught by both faculty at WCM-Q and faculty in New York via video link. As they become more experienced, they will begin training in partner institutions and will also have the opportunity to work under the guidance of experienced doctors at New YorkPresbyterian Hospital – one of the world’s foremost teaching hospitals.
Dr Sheikh added: “The white coat is recognized throughout the world as a symbol of compassion and healing and it gives me great pleasure to present them to our new medical students. These young people are the very future of medicine in Qatar. During their careers, they will learn new medical techniques and use technology that physicians today can only dream about. They will innovate, they will conduct new research, and they will gain new knowledge, but some things will always remain the same; they will save lives and they will bring hope and relief to those in distress.”
If successful in their training, they will then receive a Cornell University medical degree. Dr Javaid Sheikh, dean of WCM-Q, said the White Coat Ceremony is one of the highlights of the college’s academic
“Together with Weill Cornell’s other alumni, they will be the backbone of Qatar’s medical system, delivering world-class healthcare to all of the country’s citizens for decades to come.”
The White Coat Ceremony is the culmination of WCM-Q’s orientation period when new students are welcomed to the college, meet their classmates and faculty members and learn the standards of professional conduct expected of them. It is also an opportunity to formally welcome students into the six-year medical programme, which integrates two years of pre-medical training with the four-year medical curriculum. This year, 46 students were inducted, with each being presented with an Ibn Sina pin, Ibn Sina being one of the most significant physicians of the Islamic Golden Age. The students and assembled audience heard from the keynote speaker, WCM-Q alumna Dr Sarah Al Khawaja, who holds the position of chief resident, dermatology and venereology at Hamad Medical Corporation, and is a clinical associate in dermatology at WCM-Q. Dr Al Khawaja told the medical students: “Medicine is a journey, not only a journey to acquire knowledge and progress professionally, but a journey of selfdiscovery. How can we use our time and our talents to help others? You don’t need to have the answer to this question now, but you do need to have and cultivate the
intellectual curiosity to ask and to find out.” Aljazi Al Khalifa was one of those to receive her white coat and is in the first year of the medical curriculum. She said: “I’m really happy and proud that I’ve arrived at this moment after three years of hard work. This is what I’ve been waiting for. The foundation and premedical programmes were difficult but manageable with the support of my family and friends, and receiving the white coat is great motivation to continue working.” “I’m now just looking forward to applying what I’ve learned and becoming the doctor I know I want to be.” Mohammed Al Mohamedi has just joined WCM-Q on the six-year medical programme, so will spend the first two years on the pre-medical curriculum. Mohamed said: “I first heard about Weill Cornell when I was at school, and there was a group of students applying so I joined them. I’ve always wanted to be a doctor, ever since I was young. I know for a fact that it’s going to be difficult; I’ve only been here for a few days, but I can tell it’s not going to get any easier. However, becoming a doctor means I can help other people, along with my family.”
Sang Gon Yi chose to join WCM-Q despite originally hailing from South Korea. Gon Yi said he had attended high school in Malaysia and had applied to WCM-Q because of its six-year medical programme. He said: “Medicine is always something I’ve been looking at but in the US you have to take a four-year undergraduate degree and then another four years at medical school but at WCM-Q it’s six years in total and you can then apply for residencies in the US.” He added that the atmosphere of WCM-Q was also a reason for selecting the college. “In Korea I think it’s very competitive and there’s no sense of community but having been here for just two weeks I can see that everyone works really well together.”
Weill Cornell Medicine - Qatar is a partnership between Cornell University and Qatar Foundation. It offers a comprehensive six-year medical program leading to the Cornell University M.D. degree with teaching by Cornell and Weill Cornell faculty and by physicians at Hamad Medical Corporation (HMC), Aspetar Orthopedic and Sports Medicine Hospital, the Primary Health Care Corporation, the Feto Maternal Center, and Sidra Medicine, who hold Weill Cornell appointments. 57 > QATAR TODAY > SEPETMBER 2019
spotlight > education
ARAB INTERNATIONAL ACADEMY WELCOMES ITS STUDENTS BACK TO SCHOOL
ARAB INTERNATIONAL ACADEMY (AIA) IN DOHA WELCOMES ITS STUDENTS FOR THE NEW SCHOOL YEAR (2019-2020) WITH EXCITING AND FUN ACTIVITIES. THE SCHOOL HAS ALSO PUT SYSTEMS IN PLACE TO MAKE SURE THAT NEW STUDENTS INTEGRATE WELL AND ADAPT QUICKLY.
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IA implements the International Baccalaureate program (IB) for all levels, from kindergarten to grade 12. It received its accreditation last year from the International Baccalaureate Organization (IBO) for all three programs: Primary Years Program (PYP) for grade KG-5, Middle Years Program (MYP) for grades 6-10, and the Diploma Program for grades 11-12, this allowed AIA to become a fully accredited International Baccalaureate (IB) school in record time given that this is their fourth year of operation. Currently, AIA is one of eight schools in Qatar with the complete IB accreditation. Furthermore, it is the only school in Qatar that offers PYP in Arabic and English. The IB Program is one of the world’s most distinguished academic programs. It is implemented by thousands of schools around the world. It focuses on developing the whole person cognitively, socially, emotionally, and physically. Many scientific studies have shown that the IB DP program is one of the best school preparation programs, in terms of knowledge and skills, for success and excellence at the university level. The program adopts learner-centered methods based on research, conceptual development, and responsiveness to students’ different learning styles. The IB Program helps students to become thinkers, inquirers, communicators, risktakers, balanced, reflective, principled, caring, knowledgeable, and open-minded. AIA provides active language programs in English, Arabic, and French. It also provides students who speak other native languages with the necessary tools for communication and language learning.
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(AIA) is committed to the development of the creative capabilities of students by providing comprehensive arts, IT and Physical Education programs; teachers are encouraged to integrate these subjects into their instruction to provide students with an opportunity to develop self-confidence and autonomy. Arab International Academy (AIA) was founded in Doha, Qatar in 2016, with the goal of establishing an advanced
international school that provides a rigorous and global educational experience. Arab International Academy (AIA) aspires to contribute to raising the next generation of informed citizens who can comfortably and confidently adapt to an ever-changing world. AIA graduates will possess the necessary skills to develop communities and address challenges. They will be accountable stewards who preserve and advance their own culture while engaging equally with others.
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spotlight > education
IDEAS THAT SHAPE YOUR WORLD START HERE CARNEGIE MELLON UNIVERSITY ATTRACTS A CERTAIN TYPE OF STUDENT: MOTIVATED, INVENTIVE, AND DRIVEN TO MAKE A DIFFERENCE. STUDENTS COME TO CARNEGIE MELLON TO LEARN, CREATE AND INNOVATE WITH THE VERY BEST. THEY LEAVE WITH THE PASSION, CONNECTIONS, CREDENTIALS AND LIFELONG FRIENDS WHO WILL HELP THEM CHANGE THE WORLD.
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ork that matters: For more than a century, Carnegie Mellon University has challenged the curious and passionate to imagine and deliver work that matters. A private, global university, Carnegie Mellon stands among the world’s renowned educational institutions, setting its own course with programmes that inspire creativity and collaboration. Consistently topranked, Carnegie Mellon has more than 13,000 students and 110,000 alumni worldwide.
A world-class education in Qatar: At the
invitation of Qatar Foundation, Carnegie Mellon joined Education City in 2004 to deliver select programmes that will contribute to the long-term development of Qatar. Today, Carnegie Mellon Qatar offers undergraduate programmes in biological sciences, business administration, computational biology, computer science, and information systems. More than 400 students call Carnegie Mellon Qatar home.
Programmes of study: CMU-Q offers undergraduate programs that are ahead of the curve, in fields at the forefront of technology, innovation, scientific discovery and economic growth. All undergraduate majors require four years of full-time study, after which students earn a bachelor of science degree. • Biological Sciences has a core curriculum of biology, chemistry, computer science, mathematics and physics. In-depth exposure to multiple disciplines prepares students for careers at the forefront of emerging new fields. 60 > QATAR TODAY > SEPETMBER 2019
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Business Administration provides the foundation for motivated students to become leaders in the business arena within Qatar, the region and the world. The programme emphasizes an analytical approach to problem-solving, providing the tools to adapt to an evolving business environment. Computational Biology applies computer science techniques to complex biological and biomedical problems. The programme provides an intensive, interdisciplinary education grounded in the disciplines of biology and computer science. • Computer Science provides students with the core skills of mathematical reasoning, algorithmic thinking, and programming. The programme encourages creativity and provides the fundamental skills to develop new technologies. • Information Systems is based on professional core courses that teach students to analyze, design, implement and test information systems using current and emerging practices. The flexible nature of the programme encourages students to work outside of traditional disciplinary boundaries. Learn by doing: Students at Carnegie Mellon Qatar learn beyond the classroom through a slate of unique enrichment opportunities. Most students choose to study abroad for part of their education, or travel on academic trips that enhance classroom work. Students who intern receive on-the-job experience,
which adds an important dimension to their undergraduate education. Research is part of the fabric of a Carnegie Mellon education. Students engage in a wide variety of research endeavours, such as independent studies, senior and honours theses, summer internships and funded projects as junior researchers. Small campus, big spirit: The CMU-Q student body is exceptionally diverse, representing about 40 nations. Students form a busy and active community, participating in clubs, organizing large-scale events, traveling for service and academics, and competing in local and international contests. The low student-to-professor ratio means students receive unparalleled individual attention.
Graduates who make a difference:
Graduates from CMU-Q are highly soughtafter: most choose careers in top organizations, while a significant number pursue graduate studies at international institutions. With 12 graduating classes, the total number of alumni is more than 800. The CMU-Q alumni network has a growing influence, with most graduates working in Qatar or the region. You will find our alumni in organizations like Ooredoo, Qatar Airways, Qatar Shell, McKinsey and Company, KPMG, Siemens and ExxonMobil. In Doha’s budding entrepreneurial sector, CMU-Q alumni members are a driving force, creating start-ups, mentoring current students and contributing to an emerging community of young innovators.
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spotlight > education
VCUARTS QATAR
A CENTRE OF CREATIVITY AND OPPORTUNITY
THE VIBRANT VCUARTS QATAR CAMPUS IN EDUCATION CITY IS WHERE NEW THINGS HAPPEN EVERY DAY, IDEAS FLOURISH AND CREATIVITY IS IN ABUNDANCE.
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hrough its innovative programming, the University opens up the exciting world of art and design to young Qataris, residents and international students. The University makes possible the choice of rewarding careers as artists, teachers, designers, entrepreneurs and creative professionals in the arts and design world and beyond. VCUarts Qatar in Education City is the overseas sister campus of the internationally renowned Virginia Commonwealth University’s prestigious School of the Arts in Richmond, Virginia. VCUarts in Virginia has been a top-ranked art and design programme in the United States for more than 10 years, according to U.S. News & World Report.
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Established in 1998 through a partnership with Qatar Foundation, VCUarts Qatar offers students the opportunity to earn a Bachelor of Fine Arts degree in fashion design, graphic design, interior design and painting and printmaking, a Bachelor of Arts degree in art history and a Master of Fine Arts degree in design. In addition, VCUarts Qatar’s Libraries have the broadest range of art and design books in Doha, as well as the region’s only Materials Library. The current student body consists of 323 students representing 35 nationalities. The campus in Education City attracts significant contributors to contemporary visual culture for speaking and teaching engagements. Major events by VCUarts Qatar include the upcoming Hamad bin Khalifa Symposium on Islamic Art on November 10-11, the University’s annual
fashion show, the BFA + MFA exhibition by graduating students, the Tasmeem Doha art and design conference, as well as numerous exhibitions and lectures, many of which are free of charge and open to the public. These events draw large and diverse audiences and shine a light on the talents and achievements of VCUarts Qatar’s students, alumni, faculty and staff. The Qatar community is also welcome to explore their creative side at VCUarts Qatar. Short courses in art and design are offered to all through the university’s Community Education Program. No prior experience or education is required and the courses take place throughout the year. Subjects range from fashion design and ceramics to photography – more information can be found at Qatar.vcu.edu.
affairs > Auto News ALL-NEW SPORTY EXPERIENCE WITH BMW X6
BMW unveils a highly distinct and innovative sports car.
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he new BMW X6 exhibits the agility and versatility of a Sports Activity Vehicle with the head-turning looks of a coupe. The third-generation X6 employs a clean, exclusive design language to underscore its confident and commanding appearance. Its interior is as impeccable as its façade with its exclusive ambiance, all while exuding a sporting flair. The line-up of engines available for the new BMW X6 includes two petrol units
and a pair of diesel variants. It also has an advanced powertrain and chassis technology skillfully innovated to deliver a uniquely sporting yet luxurious driving experience. Following in the footsteps of its predecessor, the BMW X6 will be officially launched in November 2019.
MG5: SPORTY, SPACIOUS AND TECH-SAVVY Auto Class Cars introduces a new spacious compact sedan for the first time in the Middle East
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esigned with the tech-savvy millennial audience in mind, the new MG5 is built from the ground up, with a sporty look that perfectly suits those with an active lifestyle. This new sedan ensures that buyers will no longer have to compromise when choosing a compact sedan as the all-new MG5 has it all together with an impressive list of hitech features and entertaining performance and handling. The arrival of the all-new MG5 is the latest stage in the exciting expansion of the British-born brand’s Middle East car line-up, and comes at a time when more customers in the region are buying MG cars than ever before.
Despite sitting in the highly competitive compact sedan sector, the MG5 is particularly roomy, at 4,601 mm long, 1,818 mm wide, 1,489 mm high, and with a 2,680 mm wheelbase and 512-litre boot. In the Middle East, the MG5 will come with a lively yet efficient 1.5 L petrol engine delivering max power of 118 hp and up to 150 Nm of torque, and mated to a fuel-efficient CVT. The driving experience is bolstered by MG’s XDS system for enhanced cornering, a choice of three steering models and ESP traction control across all trims. Needless to say, the MG5 is more than equipped and ready to take on the roads of the Middle East. 63 > QATAR TODAY > SEPETMBER 2019
affairs > auto news
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G Motor officially launched the all-new MG RX8 to the region, the first-ever seven-seat SUV. The new automobile is a robust and spacious SUV with the largest wheelbase in its segment, the MG RX8 is fully equipped 4x4 with six different driving modes. Designed with a strong truck chassis frame, the MG RX8 is capable of handling the toughest offroad terrains powered by an efficient 220hp 2.0-litre turbo engine. Its interior also features adjustable rear seats and the largest third-row space in its segment. A touch of premium wood grain also gives the RX8 a high-class feel. When it comes to its tech features, the MG RX8 houses a 10-inch touch screen in-car entertainment system, ventilated seats and wireless mobile device charging capabilities. Commenting about the launch, Tom Lee, Regional Director of SAIC Motor, the parent company of MG Motor, said: “For the first time in our 95-year history MG Motor is introducing a seven-seat SUV. With the allnew MG RX8, we are making a bold move into a segment we’ve never operated in before, and I am confident that this car will make an impact amongst its competitors.”
FIRST-EVER SEVEN-SEAT SUV IN QATAR MG Motor reveals the details of its first-ever seven-seat SUV
FUSO: QATAR’S MOST TRUSTED BRAND FOR TRUCKS AND BUSES
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uilt in Japan, FUSO trucks have captivated the Doha market with their ideal performance that best suits Qatari companies. FUSO trucks are perfectly suited to meet the demands and requirements of various sectors, and provide services for passenger and staff transport, commercial operations and other kinds of business. Qatar
Automobiles
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Company,
the
Qatar Automobiles Company is now supplying FUSO trucks to meet the reliability and durability demands of the Qatari market.
authorized distributor of the FUSO brand, is known for its trusted quality, economic efficiency, solid and functional design, and committed services. In the segment of light-duty trucks, Mitsubishi FUSO Canter is the flagship product of the company and has the highest market share in Qatar.
a high-performance of 4.2 liter 4-cylinder
In the buses category, the Rosa is by far the only bus in Qatar that can accommodate up to 26 seats including the driver. It is equipped with class-leading features and
of transportation including entertainment
diesel engine and an independent front suspension. The Mitsubishi Fuso Rosa is a Japanese minibus manufactured by Mitsubishi Fuso Truck and Bus Corporation. The bus is perfect for all kinds trips, school transportation, staff and VIP transport.
business > Marketwatch BREAKING LANGUAGE BARRIERS
LG Electronics presents the world’s first Arabic – supported AI TVs LG Electronics (LG) has unveiled its new OLED and NanoCell TVs, which highlight its latest innovations in television technology. The new LG OLED TVs (models: E9 and C9) and NanoCell TVs (models: SM90 and SM81) have the ability to understand requests and commands in Arabic using voice service support. Natural Language Processing (NLP) enables LG’s new televisions to work using voiceactivated control in multiple languages. LG’s ThinQ AI technology is designed to listen, think, answer and evolve, in line with the user’s requests and personal tastes.
HUAWEI’S ASCEND 910 AND MINDSPORE Huawei officially launched the world’s most powerful AI processor – the Ascend 910 – as well as an all-scenario AI computing framework, MindSpore.
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uawei has been making steady progress since its AI strategy announcement in October 2018. Keeping its promise for a full-stack and all-scenario AI portfolio, Huawei now proudly reveals the Ascend 910 and MindSpore to the public, marking a new stage in Huawei’s AI strategy. The Ascend 910 is a new AI processor that belongs to Huawei’s series of Ascend-Max chipsets. At the launch, Huawei claimed
EIGHTH EDITION OF CITYSCAPE QATAR
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the Ascend 910 possesses more computing power than any other AI processor in the world. Alongside Ascend 910, the company also launched MindSpore, an all-scenario AI computing framework that supports development for AI applications. Building on its AI framework development goals from last year. MindSpore helps ensure user privacy because it only deals with gradient
and model information that has already been processed. The MindSpore AI framework is also adaptable to all scenarios – across all devices, edge, and cloud environments – and provides on-demand cooperation between them. Its “AI Algorithm As Code” design concept allows developers to develop advanced AI applications with ease and train their models more quickly.
Cityscape Qatar, the only real estate exhibition and conference of its kind in the country, is set for another successful showing this October 22–24.
rganized by Cityscape and Elan Group and under the patronage of Sheikh Abdullah bin Nasser bin Khalifa Al Thani, Qatar’s Prime Minister and Minister of Interior, the 8th edition of Cityscape Qatar will take place at Doha Exhibition & Convention Center. Top exhibitors will be joining the event, such as Qatari Diar, Just Real Estate, Amar city, QIMC, Edara, Florens Resort and Suites, and Oral Architecture & Engineering, as well as leading real estate companies from Oman, Kuwait, Turkey, the UK, Switzerland and Tunisia. The event will showcase projects to local, regional and international homebuyers and investors. Last year’s edition ended with positive results and feedback which holds out great promise for October. Commenting about this, Carlo Schembri, Exhibition Director of Cityscape Qatar, stated, “In this climate, Cityscape Qatar will once again offer unparalleled investment opportunities for the local and international real estate markets.
Aligned with Qatar’s National Vision 2030, the event will feature a wide range of real estate projects from across the entire property spectrum.”
culture > Doha Diary A MOTHER AND SON’S “PERFECT DUET”
Qatar’s talented and key artist Ahmed Al Jufairi has created with his mother the “Perfect Duet”, that was exhibited at Art 29, W Doha Hotel & Residences.
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he “Perfect Duet” showcases the nexus of mother and son, cultures and histories, India and Qatar, and colours and mediums. The collection of artworks including work on canvas and sculptures expresses the artistic locus of both Ahmed Al Jufairi and Hanady Al Othman. The exhibition comprises of over 20 installations based on different mediums of art. The “Perfect Duet” also marks Hanady AlOthman’s first exhibition of her artistic flair
with W Doha. Speaking on the opening night, Ahmed Al Jufairi commented, “I am excited to display my latest work here at Art 29. However, it is even more of an exciting moment this time round as I am proudly standing with my mother who not only is my inspiration but also my artistic mentor, and a revered artist in her own right.” Ambassadors and dignitaries graced the exhibition to celebrate the vibrant union of Qatar and India through the artistic expressions of a mother and son.
HAND IN HAND FOR SUSTAINABLE DEVELOPMENT HEC Paris in Qatar and Elite Paper Recycling join forcesin their commitment to sustainable development.
FILMS SUPPORTED BY DFI CHOSEN FOR THE 76TH VENICE INTERNATIONAL FILM FESTIVAL Seven films supported by the Doha Film Institute (DFI) have been officially selected to screen at the longest-running film event in the world.
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n its commitment to move towards sustainable paradigms, HEC Paris, ranked number 3 worldwide in Executive Education by the Financial Times, has advanced a step closer by signing an agreement with Elite Paper Recycling (EPR) for its waste paper collection.
This agreement with EPR reflects HEC Paris’ commitment to align and strengthen its vision to support Qatar National Vision 2030 in transforming the country into an advanced society capable of achieving sustainable development by 2030. This also highlights EPR’s continuous efforts to contribute positively to the nation’s sustainable economy by providing gainful learning and employment opportunities EPR has launched mega public awareness projects such as “The Eco Dome” and the “Green Flee” all part of the overall communication strategy and of course in line with Qatar National Vision 2030.
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he seventy-sixth edition of the Venice Film Festival in 2019 continues to work towards the festival’s aims to raise awareness and promote international cinema in all forms. This year, the diverse line-up of DFI films selected to screen at the festival comprises exciting works from emerging and established filmmakers from the Arab world, India and Mexico. The films were titled A Son (Tunisia, France, Lebanon, Qatar) by Mehdi Barsaoui which was selected for the Official Orizzonti section of the festival, Bombay Rose (India, France, UK, Qatar) by Gitanjali Rao to open the festival’s prestigious Critics Week programme, and Joshua Gill’s Sanctorum (Mexico, Dominican Republic, Qatar) to close the festival. Furthermore, other titles in the Critics Week programme include Shahad Ameen’s Scales (Saudi Arabia, UAE, Iraq, and Qatar) and Ahmad Ghossein’s All This Victory (Lebanon, France, Qatar). On the other hand, You Will Die At Twenty by Amjad Abu Alala (Sudan, France, Germany, Norway, Egypt, Qatar) premieres in the parallel Venice Days programme and Alam, The Flag by Firas Khoury (Palestine, France, Qatar) premieres at the Venice Production Bridge.
SIDRA MEDICINE OFFICIALLY ACCREDITED Sidra Medicine has been awarded with institutional accreditation by the Accreditation Council of Graduate Medical Education International (ACGME-I).
QNRF AND MOEHE SUPPORT THE NATION’S PRIDE Qatar National Research Fund (QNRF), in collaboration with the Ministry of Education and Higher Education (MOEHE), supports five high school students representing Qatar in the IOAA 2019.
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eld in Hungary, Budapest, the Olympiad continues to inspire the next generation of astronomers by encouraging them to study the subject at university level. Way back in 2016, Qatar fielded the first Arab team to participate in the IOAA and has been participating every year since. This year, five local students were selected after a competitive screening process that took place at the annual Qatar Astro Olympiad competition – a part of the National Scientific Research Week held jointly by QNRF and MOEHE. The participating students are: Amna Laram and Sara Nabil, from Qatar Secondary School for Girls; Aisha Mohammed Ali, from Umm Ayman Secondary School for Girls; Salma Algamal, from Alghowiriyah Secondary School for Girls; and Abdelrahman Tasabhji, a student at Ali Bin Jassem Secondary School for Boys. QNRF and MOEHE express their enthusiasm in partnering and sponsoring the participation of these students from Qatar. They are also enthusiastic about the rising number of students taking an interest in space sciences.
KINDNESS SPREADS IN QATAR McDonald’s Qatar and Wa’hab joined forces to distribute cooling towels at the labour camp.
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ommenting on the accreditation, Prof. Ibrahim Janahi, Chair of Medical Education at Sidra Medicine, said: “We are thrilled with the overwhelmingly positive feedback we received by the Accreditation Council of Graduate Medical Education International. This prestigious, international accreditation is testiment to the outstanding quality of our medical education programmes which will support the delivery of safe, quality care for the women and children of Qatar.” In order to be accredited, the process involves a comprehensive evaluation of Sidra Medicine’s academic and administrative effectiveness, with a specific focus on the robustness of its internal quality assurance system. This also includes Sidra Medicine’s policies and practices that impact the quality of all the medical programmes it offers.
cDonald’s Qatar and Wa’hab, an organisation that redistributes surplus food to the needy, embraced their sense of community spirit distributing over 200 innovative cooling towels to on-site construction workers at the labour camp at Industrial Area. The distribution of cooling towels also forms part of McDonald’s Qatar's wider initiative that aims at ensuring the welfare of the construction workers and guarantees the safety of the workers while working under the scorching sun. The ice towels that were distributed can be worn on the workers’ necks to reduce heat stress and fatigue during summer by cooling their
upper body. Given the success of its recent collaboration with Wa’hab on a wide range of charitable initiatives recently, McDonald’s is determined to continue to contribute to the well-being of the local community, nurturing an environment of respect and social welfare.
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culture > doha diary
HAMILTON UNIVERSITY INTRODUCES THE LARGEST SCHOOL THEATRE IN DOHA
Located in Mesaimeer, Doha, Hamilton launched its on-campus theatre with a theatrical event titled “An Afternoon at the Theatre”, and produced by a director from London’s West End.
A NEW CHOLESTEROLCONTROLLING DRUG IN THE WORKS A research agreement has been signed between WCM-Q and Moderna, Inc. to develop a new cholesterolcontrolling drug.
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amilton, part of International Schools Partnership (ISP), a UKbased owner and operator of 40 schools globally, collaborated with “Gotta Sing!” led by Greg Arrowsmith, a musical director from the West End for the London Palladium pantomimes, and Joanne Corrigan, an experienced ex-BBC live programme editor and producer, to host a series of workshops for children about singing and other aspects of performing arts. Lasting for a day, a performance by more than 250 students concluded the launch with an exhibition of their many talents. Commenting on the inauguration, Terry Senior, Hamilton Principal, said: “We are so proud to launch our school theatre on such a high note. At Hamilton, arts and cultural programmes are central to our rounded educational approach. We will continue to collaborate and partner with the best in the field to ignite the students’ passion for learning and discovering their limitless potential.”
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nder the agreement, Moderna,Inc. , a pioneering US biotechnology company based in Cambridge, Massachusetts, will sponsor a study by WCM-Q researcher Dr Hani Najafi to develop and test a new therapy for rebalancing levels of circulating blood lipids by effectively increasing the clearance of atherogenic lipids and enhancing the production of functional, anti-inflammatory lipid species. The research aims to develop a cholesterol-controlling drug that could lead to radically improved treatments for type 2 diabetes and cardiovascular disease. Speaking about the goal and purpose of the agreement, Dr Khaled Machaca, Senior Associate Dean for Research, Innovations and Commercialization at WCM-Q, said: “The combination of Moderna’s groundbreaking mRNA technology platform and our world-class expertise and facilities here at WCM-Q gives us a great foundation for developing novel therapies that could one day make a real difference in people’s lives.”
AD
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