October 2013

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Under-retailed Qatar plays catch-up
UAEs Mubadala investing hugely in Serbia
Will construction costs for mega projects underway trigger infation?
How High Is Up?
bq |
www.bqdoha.com
1
CONTENTS
Cover story
ENERGY FINANCE
October 2013
How High Is Up?
Is higher inflation going to be
the fallout of the massive
spending on the mega projects
underway, or are these fears
largely misplaced?
28
04 08 12 14 17
IN CONTEXT
The Slime
Solution
The future of
biofuels is all
about algae. Now
you can power
your car by
flushing your
toilet
A Mighty Wind
Renewable power
is multi-
megawatts
stronger than
ever before. And
its about to go
online, floating
offshore
in the North Sea
The Slump
Harvest
The collapse of the
rupee may have
ushered in a
windfall for Indians
in the Gulf but its
consequences
reach far
beyond remittance
Getting More
Personal
There is a rise in
consumer loans
despite banks
having burnt their
fingers in the
pre-crisis days
Capital Import
Abu Dhabi
investment fund
Mubadala is one of
a number of UAE
companies
expected to make
big investments in
Serbia
B2B Platform
The latest tenders,
products, news,
services and
events follows
each lead section
bq |
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bq | CONTENTS
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3
QATAR AND BEYOND
Published by Gulf Star Group
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Editor-in-Chief: Priya DSouza
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Correspondents: Rohan Soman (Qatar); Rabin
Gupta (Qatar/India); Tina Isanti (Europe); Abhiraj
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Contributors: Rajeev Acharya; E. Shahid
Photography: Bosco Menezes
Cover Story Illustration: Nikhil Pai
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CONTENTS
October 2013
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THE ARTS VISUAL DATA R&R
Its A Mall World
There are plans for 14 new malls in the
country by 2015. Under-retailed
Qatar plays catch-up
Tapping Infrastructure
Drake & Scull Qatar is looking at several
flush years of business in the
industry - profile
Smart & Smarter
The Smart Government initiative is the
UAEs way of responding to innovation
Stretch in Style
A round-up of the best limousine services
the Gulf has to offer
Business Rewired
Intelligent infrastructure management is
a must for reliable enterprise
network performance
Paradise Found
A top 10 list of
some
incomparable
getaways that will
offer you all the
privacy and
exclusivity that
you crave
This Restaurant
Sizzles
Majlis, popular for
its sheesha and
exquisite Arabian
cuisine creations,
is ideal for a
business luncheon
GCC Illustrated
bq presents the
first in a series of
maps and
infographics
detailing the GCC.
Volume 1: Part 1
Culturally
invested
Qatar emerges as
a major player on
the arts scene
helping set taste
and stocking
museums with the
art of the era
46 60 54 58
bq | ENERGY l BIOFUEL
www.bqdoha.com
4
The
Slime Solution
The future of biofuels is all about algae. Now you can power your car by
flushing your toilet
By Tina Isanti, Ljubljana
Courtesy Aqualia: Another ten years of research is needed
Europe
bq | ENERGY l BIOFUEL
www.bqdoha.com
5
One mans trash, another mans treasure. This certainly applies to technology that turns
wastewater into fuel. And not just any old kind of fuel too. Clean, sustainable and green
biofuel. The EU-backed All-gas project is aimed at just that - producing biofuel in a more
sustainable way by cultivating fast-growing micro-algae.
The main company behind the scheme, Spanish FCC Aqualia, has already produced its first
crop of algae that will be processed to get methane, thus creating an alternative approach
to the increasingly controversial crop-based transport fuels. The All-gas biofuel demonstra-
tion project will cultivate fast-growing micro-algae by using the nutrients in wastewater and
then by further processes, generate biomethane which can be captured and used in trans-
port fuel. Another motivation behind the scheme is to ease the pressure that land-intensive
biofuel crops, such as palm oil, put on output and prices of food crops.
The process
The technology bears much similarity to conventional wastewater treatment plants (WWTP),
where pollutants are extracted from wastewater and converted into biomass. The difference
with the new technology is that energy for the algae growth will come from sunlight and
the algae will be harvested for transformation into biofuels. After anaerobic pre-treatment
to maximize biogas production and gain CO2, the wastewater is then further purified by
the growing algae. Harvested algae will be processed for the extraction of oils and other
valuable by-products, while the remaining algal biomass is transformed into biomethane,
CO2 and minerals, together with other residual biomass from wastewater or agriculture.
The project will be implemented in two stages at the Cadiz wastewater treatment plant in
Spain. First a prototype facility will be put up to gather the main design parameters for the
full-scale plant. Once the viability and sustainability of the concept has been verified in full-
scale ponds, 10 hectares will be developed and operated during the following three years.
The project
The All-Gas project is led by a consortium of seven European partners, with Aqualia, the
third-largest private water company in the world, co-ordinating the whole scheme. The
other partners are SMEs, The Feyecon Group, MTD and Hygear, engineering company BDI
BioEnergy International, and research organisations, The Fraunhofer Umsicht Institute and
The University of Southampton.
All-gas (algas means algae in Spanish) will demonstrate the full value process chain in culti-
vating fast-growing micro-algae with simultaneous wastewater nutrient removal, harvesting
and processing biomass for oil and other chemical extractions. Included, at the 10-hectare
commercial scale, is the downstream algal biofuel production and use for transportation in
up to 400 fleet vehicles.
Some 7.1 million of the projects initial 12-million development funding came from the
European Commissions 7th Framework Program for energy-related projects, geared at
Europes target that 20% of energy should be produced from renewable sources by 2020.
As project officer, Dr. Kyriakis Maniatis highlights, to help meet the EUs ambitious renew-
able energy targets, we are supporting innovative approaches, and algae biofuels are one
of the most exciting prospects the All-Gas project was selected among 20 proposals we
received for that topic.
And it surely is exciting. If the target productivity of 3,000 kg of dry algae is reached, enough
biodiesel to run about 200 cars could be generated. The bio-methane production from the
anaerobic digestion of raw wastewater and biomass residues should yield an equivalent
amount of bio-methane for another 200 cars. Or, as project leader, Aqualias Frank Rogalla,
colourfully put it, We are turning an expensive environmental problem into a sustainable
bioenergy source. The opportunity is such, that 60 million people - roughly the size of the
UKs population would be able to power 1 million vehicles from just flushing their toilet!.
Sounds good, but there is more. Aqualia lists a number of other benefits of the All-gas
project: the removal of pollutants nitrogen and phosphorous from wastewater; recycling
The opportunity is such, that 60 million people - roughly
the size of the UKs population would be able to power
one million vehicles from just flushing their toilet
There are already a few stations selling (partly) algae fuel in
the US. The fuel is a mix of diesel and algae oil. Soladiesel, the
company which makes it, states it gives a 20 percent reduction
in emissions compared to pure fossil-fuel diesel.
bq | ENGERY l BIOFUEL
www.bqdoha.com
6
resources that cuts the need for polluting
petrochemical based fertilizers; the energy
harvested from wastewater and its residues
which avoids the need for electrical energy
necessary for the standard wastewater
treatment process and reducing the related
carbon emissions. Algae also have many
advantages over biofuel crops such as oil
palm, sugar cane and canola as they allow
higher yields, faster growth, plus additional
by-products such as fertilizer, colourants,
proteins, enzymes and feedstocks can be
obtained from the process. Sounds too good
to be true. And, for now, it seems to be too.
Not just there yet
In its August announcement, FCC Aqualia
has already ruled out some of its earlier
ideas as unsustainable. Algae biofuel is not
a new idea and others have been trying for
some time now. In 2009, Exxon Mobil Corp.
said it would invest $600 million to develop
algae-based biofuels within a decade. It has
already invested more than $100 million but
after four years economically viable results
are still nowhere in sight. French genome
engineering company Cellectis as well has
problems proving the effectiveness of its
technology to produce biofuel from algae
to its partner Total. In June they announced
they have six more months to do so.
The theoretical potential of algae-based
biofuel is undoubtedly huge and believed
by many to be an industry game changer.
It could greatly reduce the greenhouse
emissions and according to estimates by the
US Department of Energy (DOE) it grows
and can be harvested so quickly that it can
produce some 30 times the amount of fuel
per acre as any land crop; can be grown
anywhere on mountains, in deserts etc.
- so no farming land needs to be used for
its cultivation and since the growing algae
remove carbon dioxide from the atmos-
phere, and the fuel produces a lower level
of emissions than fossil fuels, algae fuel is
theoretically very close to carbon-neutral.
So DOE recently commissioned a study
from the National Research Council on the
economic and environmental viability of
algae fuel in its current state. The findings
say were not just there yet. There are
hurdles to overcome: the growing process
needs to be made more economically viable
and environmentally sustainable, NRC
says. As Joel Cuello, a member of the NRC
committee which conducted the recent
study, says, these are largely related issues.
In my opinion, you cant divorce the two.
As a matter of fact, most efforts aiming at
lowering the production costs is to make
the process more sustainable in terms of
energy, water, and nutrient use.
One way is to find or engineer a sort of algae
which excretes the oil, thus eliminating the
need for harvesting. Another is to find an
efficient way to use wastewater including
municipal sewage. And this is exactly what
the All-gas project is all about. So assuming
everything goes as planned, construction
of a 10-hectare plant in Spanish Chiclana,
should be completed by 2016.
Aqualia, FCCs water management sub-
sidiary, is also present in the Gulf and was
awarded the MENA Market Leadership
Award, granted by Frost & Sullivan con-
sulting firm, in Dubai, last year. Frost &
Sullivan highlighted aqualia as a pioneer,
since it is the first foreign company to
obtain a sewage and water treatment
contract in Abu Dhabi.
Will the wastewater treatment plant in Chiclana become the first algae biofuel producing facility?
The All-gas biofuel
demonstration project
will cultivate fast-growing
micro-algae by using the
nutrients in wastewater and
then by further processes,
generate biomethane which
can be captured and used in
transport fuel
Cultivation and harvesting
algae
Power generation
plant
Oil Extraction and
Transesterification
Alcohol
Extraction
((Polyunsaturated Fatty Acids))
Bi o-Di esel
Bi ogas
Bi omass
Agri cultural and Domesti c
Effluents
H2O O2
2
1
5
4
3
Bi omethane
Algae
Resi due
Nutri ents:
N, P and H2O
CO2
PUFA
Treatment of biogas,
separation,
purification
and distribution
biogas plant
Sun
6
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8
The next wave of renewable power is bigger, cheaper, and multi-megawatts
stronger than ever before. And it's about to go online, floating offshore
in the North Sea
By Tina Isanti, Ljubljana
Europe
The fast developing sector of offshore floating wind turbines and wind farms may signifi-
cantly contribute to solving the energy crisis in Europe. According to the latest report from
the European Wind Energy Association (EWEA), floating wind turbines placed in the deep
waters of the North Sea could power the European Union four times over.
Decreased costs primary goal of new technology
Current commercial substructures are economically limited to maximum water depths of
40m to 50m, while deep offshore environment starts at water depths greater than 50m.
The study reveals that the cost of this new technology development is still high but the float-
ing platforms are considered to be cost competitive as compared to conventional turbines,
since construction in depths of over 50 meters does not require significant amount of steel
for its foundations.
Experts believe floating turbine foundations have represented the greatest portion of
the construction costs of the current wind farms and with introduction of a new floating
technology and knowledge from the oil and gas industry, the costs can be significantly
decreased. However, floating wind turbines are still a new technology and developers are
often unwilling to reveal the technological secrets and information regarding their new
innovations.
Floating wind turbines are fastened to the bottom of the sea through the use of mooring
systems that hold the turbine in place. This allows the turbine to move within a specified
limited range set by the length of the mooring system. The floating structure allows
the turbine to generate electricity in water depths where bottom-mounted towers are
not feasible.
Great potential of wind energy
Currently, Europes offshore wind sector employs 58,000 people and has an installed
capacity of just 5GW, of which 3.3 GW is located in UK waters. Only two full-scale offshore
wind turbines on floating substructures are operating one in the North Sea and one in
the Atlantic. However, the EWEA believes European capacity could reach 150 GW by 2030,
meeting 14% of the EUs total consumption.
In order to allow this sector to fulfil its potential and to attract investors into the field,
governments need to provide a stable regulatory framework and the EU should set a bind-
ing renewable target for 2030.
Britain is considered one of the worlds best sites for offshore turbines and recently
opened the planets biggest offshore wind farm in the Thames estuary. But not all British
politicians are in favour of this renewable energy strategy approach. London mayor Boris
Johnson recently questioned the value delivered by wind farms and claimed shale gas
represented a better option for Britain.
Offshore wind in Europe could also provide renewable electricity for about 145 mn house-
holds while employing 318,000 people by 2030 and providing energy security, technology
exports, and no greenhouse gases, according the EWEA report. It is believed that if the
requirements are met, the first full-scale deep offshore wind farms could be producing
power by 2017.
Floating turbines are already being tested in Norway and USA, while France and Portugal
are currently developing test projects. According to Alla Weinstein, CEO of Principal Power,
who along with WindPlus manufactures wind turbines in Portugal, The (initial) turbine is
capable of producing 2MW (megawatts) instantaneously at any one time, given enough wind
The EWEA believes Eu-
ropean capacity could
reach 150 GW by 2030,
meeting 14% of the EUs
total consumption
and costs EUR 20 mn (USD 24.9 mn) to build
and install. This is the major advantage of
floating wind turbine technology in compar-
ison with existing offshore wind farms.
bq | IN CONTEXT
www.bqdoha.com
9
Qatar condensate production increases
Increased extraction of gas in Qatar has led
to a more than seven-fold jump in
condensate production in the country since
the turn of the last decade. A record of
sorts, condensate production reached
900,000 barrels per day (bpd) in 2012,
more than crude oil production, which was
estimated at 740,000 bpd.
Condensates, very light crude oil, are a key
byproduct extracted from a non-associated
gas field, of which Qatar has the highest
reserves in the world. They include cooking
gas, known as liquefied petroleum gas
(LPG), which is a mixture of hydrocarbon
gases like propane and butane; naphtha,
which is used as a key industrial feedstock;
jet fuel used to power aircraft; and sulphur
used to produce sulphuric acid, an
important industrial chimical.
QNB report titled Qatar Economic Insight
2013 states the countrys proven crude oil
reserves were estimated by Qatar
Petroleum (QP), the state energy arm, at
2.3 billion barrels in 2011. Condensate
reserves, on the other hand, were
estimated at a massive 22.3 billion barrels.
Condensate production in the country in
2000 was barely 120,000 bpd.
DEWA to set up clean coal power plant
Dubai Electricity and Water Authority
(DEWA) is planning to set up a USD 1.3 bn
1,200 MW clean coal power plant, the first
of its kind in the GCC region. DEWA is
seeking bidders for the construction of the
plant and to this end, tenders have been
floated. The plant will be built in two phases
of 600 MW each and are scheduled to be
completed in 2020 and 2021 respectively.
When fully operational, the plant will
contribute 12 percent of output under
Dubais 2030 Integrated Energy Strategy, a
company statement said. The plant can be
seen as a diversification move on the part
of the utility. Most power units in the GCC
are fuelled by oil and gas. Setting up a
clean coal unit would mean more oil and
gas available for export.
NPCC wins USD 1.69 bn contract
National Petroleum Construction Company
(NPCC), in consortium with Technip France
Abu Dhabi, has been awarded by Abu Dhabi
Marine Operating Company (ADMA-OPCO),
the contract for the EPC work of Umm Lulu
Full Field Development Project - Package 2
(process facilities). The contract was
awarded with an approximate value of USD
1.69 bn (AED 6.2 bn).
The contracts scope of work consists of the
detailed engineering, procurement,
fabrication, offshore installation,
commissioning and start-up of a large
offshore super complex located in the Umm
Lulu Field. The complex will comprise six
bridge linked platforms including gathering,
separation, gas treatment and water
disposal facilities, utilities and
accommodation modules. These platforms
totalling over 66,000 metric tonne, will be
fabricated at NPCCs yard in Abu Dhabi.
China to be largest oil importer
China will surpass the US as the biggest
crude oil importer in the world by 2017 as
its economy continues to grow and as
Chinese drivers push demand up for fuel,
according to a report by Wood Mackenzie.
The global energy consultancy said China
would spend USD 500 bn annually on crude
imports by 2020. The price China pays will
far outstrip the peak cost ever incurred by
the US of USD 335 bn annually with US
import spending falling to only USD 160 bn
annually by 2020, the report said.
From 2005 to 2020, Chinas oil imports
would rise from 2.5 million barrels per day
(bpd) to 9.2 million bpd. US imports, on the
other hand, would fall from a peak of 10.1 to
6.8 million bpd within the same period.
That roughly represents a 360 percent
increase in Chinas crude oil imports and a
32 percent decline for the US during that
period. The US is becoming more North
America-centric for its supply needs and
China more dependent on Middle East and
OPEC crude. We will therefore see OPEC
suppliers, who traditionally focussed on the
US for crude sales, compelled to shift their
focus toward China, said Wood Mackenzies
Beijing-based president of global markets
William Durbin.
Saeed Mohammad Al Tayer, MD & CEO DEWA
bq | IN CONTEXT
www.bqdoha.com
10
Kuwaits crude exports rise
Kuwaits crude oil exports to Japan jumped
34.4 percent in recent months from a year
earlier to 6.94 million barrels, or 224,000
barrels per day (bpd), for the second
consecutive monthly expansion, recent
government data showed. As Japans
fourth-biggest oil provider, Kuwait supplied
6.4 percent of the Asian nations total
crude imports, compared with 4.9 percent
in the same month of last year, the
Japanese Natural Resources and Energy
Agency said in a preliminary report.
Japans overall imports of crude oil in July
grew 1.8 percent year-on-year to 108.03
million barrels (3.48 million bpd) for the
second straight monthly gain.
Shipments from the Middle East accounted
for 86.2 percent of the total, up 2.9
percentage points from a year before.
Saudi Arabia remained Japans leading oil
supplier, although imports from the
Kingdom shrank 8.1 percent from a year
earlier to 1.04 million bpd, followed by the
UAE with 870,000 bpd, up 6.7 percent.
Qatar ranked third with 564,000 bpd and
Iran fifth, with 172,000 bpd, respectively.
RasGas completes
offshore drilling
Qatars RasGas Company has safely and
successfully completed offshore drilling
for 30 development wells for the USD 10.3
bn Barzan gas project. This paves the way
for subsequent phases of the project to
proceed, like connecting the wells to
subsea pipelines that would take gas to
shore. The 30 development wells, spread
over three offshore wellhead platforms,
have a total length of approximately 138
km and reach more than 3,000 metres
below the sea surface. The complex Barzan
offshore drilling operations required three
jackup drilling rigs working for a combined
total of 4,740 days and involving more than
300 employees at any given time working
in challenging offshore conditions.
RasGas was appointed by shareholders,
Qatar Petroleum and ExxonMobil to
execute the Barzan gas project and operate
the facilities, one of the largest and
technologically advanced gas processing
plants in the region. When the two trains
are in operation, RasGas facilities (LNG
and pipeline sales gas) will have a total
production capacity of around 11 billion
standard cubic feet of gas per day (the
equivalent of almost two million barrels of
oil per day) making RasGas one of the
worlds largest single gas processor.
Oman Oil acquires Chile
regasification plant
Terminal de Valparaso, a joint venture
between Oman Oil Company (OOC) and
Spanish natural gas operator Enagas has
completed the acquisition of BG Groups 40
percent stake in GNL Quintero
regasification plant in Chile.
Located in the Quintero Bay in Chile, the
regasification plant commenced operations
in 2009 with a total storage capacity of
approximately 330,000 cubic metres (M3),
a total regasification capacity of
approximately 10 million M3 a day and a
delivery capacity of 1,250 M3 of LNG to the
truck loading station. In addition, work is
currently underway to increase the
regasification capacity to 15 million M3 a
day and the tank truck loading station
capacity to 2,500 M3 of LNG. GNL
Quinteros shareholders are ENAP (20
percent), ENDESA Chile (20 percent),
Metrogas (20 percent) and Terminal de
Valparaso (Enagas and Oman Oil Company-
40 percent).
Spanish natural gas system operator
Enagas owns four plants in Spain and is the
leading shareholder of a fifth. In addition,
the company has three strategic natural
gas facilities and over 10,000 km of
high-pressure gas pipelines. Enags is also
present in Mexico, with a 40 percent stake
in the Altamira regasification plant and a
role in developing gas pipelines and
compression stations.
GCC Petrochem firms earnings up
Earnings of GCC petrochemical companies
in Q2 2013 earnings went up by 4 percent
year-on-year to USD 2.64 bn compared to
the USD 2.54 bn in the same period last
year. However, on a quarter-on-quarter
basis, earnings declined by 8.9 percent
mainly because of lower income reported
by Saudi Basic Industries Corporation
(SABIC), Industries Qatar (IQ) and Saudi
Arabian Fertilizer Company (SAFCO).
SABICs profit declined by 7.9 percent
quarter-on-quarter (contributing 60.9
percent in Q2 2013 compared to 60.3
percent in Q1 2013 and 55.6 percent in Q2
2012), a GIH (Kuwait-based Gulf Investment
House) report pointed out.
GIH said Q2 performances of various
petrochemical companies were meagre
compared to the previous quarter. Prices
of various petrochemical products tumbled
and production of companies declined as
some of them underwent shutdowns for
maintenance, said GIH.
Omans oil reserves 50
bn barrels
Omans oil reserves are estimated at 50
billion barrels, of which five billion barrels
are ready for production, according to
Ministry of Oil and Gas undersecretary
Nasser bin Khamis Al Jashmi. He said
exploration programmes are proceeding
according to plan and new technologies
are being developed to exploit the
countrys oil reserves.
Al Jashmi said the Duqm refinery is at the
study and design stage and its 230,000
barrels per day capacity would cater to the
local market. There are plans to set up
petrochemicals plants to operate alongside
the refinery to maximise revenue and
support the national economy. The refinery
has also been designed to receive oil from
overseas and is expected to start
operations in 2017.
bq |
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bq | FINANCE| REMITTANCE
www.bqdoha.com
12
The collapse of the rupee may have ushered in a
windfall for Indians in the Gulf but its consequences
reach far beyond remittance
By E. Shahid, Dubai
UAE
The
Slump Harvest
What is the benefit of a dirham fetching Rs16 when that money cannot buy anything back
home? A rather stern-looking Abu Dhabi-based Indian barber, whose family lives in New
Delhi, nonchalantly queried between exuberance and pessimism over the rupee posting its
biggest percentage fall in 18 years and losing 17 percent against the dollar so far this year.
By doing so, he joined a handful of sane voices expressing concern over the turn of events.
He could see through the rather myopic euphoria engulfing his compatriots in the Gulf,
which has led to long queues at exchange houses in recent weeks.
For most Indians and other South Asians working in the region the overwhelming mantra
in recent weeks has been the following: when the currency is in decline, remit home. If the
change is of this scale, it only gets more frantic. Beneath the faade though, there are major
ramifications, primarily because Gulf expatriates are far more integrated to their economies
and the backlash hits them sooner than expected. They travel back home more frequently
than any diaspora around the world, especially those in the West. They continue to run their
families and foresee a future for themselves career-wise, should things go awry in their
countries of work.
Debt Gallows
For an average expatriate worker in the Gulf, the primary motivation is earning, saving and
investing for their families future. Sometimes this leads to excessive borrowing, even at
unsustainable levels. The lower one goes down the strata, the more acute it gets. Ironically
this has continued to be the case despite the ripple effects of the global financial crisis
and its footprint around the world. The phenomenon of excessive borrowing has manifest-
ed itself in various dimensions, albeit with similar consequences. In the UAE alone, where
Indians work in their thousands, consumer debts are reaching extreme levels. It is $95,000
per household, according to one estimate.
Periods of high growth in consumer lending, as we are seeing now, will almost always lead
to temporary expansions (or inflation) but, as with any other demand shock, this is typically
not sustainable, says Francisco Gomes, professor of finance at London Business School.
According to Gomes, if the expansion in household borrowing is driven by a combination of
poor financial literacy and lack of regulation, then the new level of spending is not sustain-
able and households will find themselves needing to scale back their debt and/or default
on loans. This not only causes a loss in private welfare for those households, but it also
will lead to a reduction in aggregate demand and therefore in overall GDP growth. If the
government then has to intervene and bail out troubled households, banks or businesses,
this will have its own additional cost on the economy, says Gomes.
Photography: Bosco Menezes
bq | FINANCE| REMITTANCE
www.bqdoha.com
13
Heavy Exchange
For K.V. Shamsudheen, director at Barjeel
Geojit Securities, even though the rupee
decline may have aggravated it, this is not
an entirely new development. Shamsudheen
who regularly mentors blue collar work-
ers on judicious saving under the platform
of Pravasi Bandhu Trust says Indian
expatriates all over the world consider the
declining value of Indian Rupee as a great
opportunity. Shamsudheen says Indias total
global remittances stood at $70 billion in
2012 and the country received 70 percent
of that amount during the first six months
of the current fiscal alone, thanks to the
depreciating rupee. An estimated 25 million
people of Indian origin live overseas, making
India the largest remittance recipient coun-
try. In 2011 alone, Indians in the Gulf remit-
ted $29 billion.
However, the diasporas foreign exchange
contribution may be a source of relief for the
FX-starved country but has a rider attached
to it. According to Shamsudheen, a major
portion of this remittance is from the Gulf
region and almost 60 percent of the remit-
tance is from blue collar workers, whose
ticket size is a maximum of Rs20,000. So
the Indian low and middle income segment
working outside India have been contribut-
ing a major portion of the remittance. The
problem though is that a large number of
workers take loans to remit.
In some countries loans are easy to get
from multiple institutions and illegal individ-
ual lenders. I know many people who have
taken loans on credit cards at an interest
rate of 36 percent and from individual lend-
ers at the interest rate of as much as 120
percent, says Shamsudheen. Such borrow-
ers are already in deep trouble, many are
not in a position to pay back and most have
invested money in land and housing, areas
that are not liquid.
Over the years, Shamsudheen has warned
against taking loans for short-term benefits.
In a survey conducted by his organization
among Indian expatriates in Gulf countries
to understand their saving habits, he found
rampant examples of living beyond ones
means, which is leaving a majority of low
and middle-income expatriates in deep
debt or with a financially uncertain future.
According to the survey, around 95 percent
of these workers face an uncertain future
because they have not invested in produc-
tive purposes at all, despite having worked in
the Gulf for at least 10 years or more. This is
especially startling considering the fact that
most of them come here with loans back
home [after paying recruitment agents].
Summer Windfall
These circumstances do not bother all and
sundry. Despite the devastating impact
of the rupee hitting a life-time low, some
people are laughing their way to the bank.
Economy in the South Indian state of Kerala,
for instance, is expecting remittances
to touch $12.5 billion this financial year.
According to one estimate, this could be an
all-time high of nearly 35 percent of its net
state domestic product. Kerala has always
been propelled by remittances from about
two million of its men and women abroad.
Remittances account for 1.6 times the
revenue receipt of the state government,
6.2 times of what it gets from the federal
government as revenue transfer, and are
more than twice its annual expenditure.
In other words, remittances can meet 60
percent of the states public debt.
There are also some less obvious benefits
of the falling rupee. International travelers
looking to benefit from a cheaper rupee
could boost Indias tourism sector, which in
turn would mean profits for ancillary sectors
such as hotel and hospitality. The falling
rupee has also attracted a large number of
NRIs to Indias realty market. According to
the Associated Chamber of Commerce and
Industry of India (Assocham) estimates,
based on a random survey of nearly 1,250
real estate developers across the country,
realtors are expecting a 35 percent increase
in business enquiries from expatriates this
year. It is also believed that key sectors such
as information technology, pharmaceutical
and textiles will benefit from a higher dollar
value as bulk of their revenues come from
overseas markets. Sugar exports are also
expected to benefit from the rupee plunge.
Host of Issues
Apart from anxiety over the state of the
rupee on individuals and businesses, there
are also concerns over what this means
for the Gulf countries which host a large
number of expatriate workers from the
subcontinent. According to one estimate,
published in an Arab News report, the
volume of annual remittances by expatriates
in Gulf Cooperation Council (GCC) countries
is at $120 billion, with $48.3 billion leaving
Saudi Arabia alone in 2012. This is expected
to increase by 20 percent in 2013. The news-
paper claimed some economists as saying
that excessive remittances are slowly caus-
ing damage to Saudi Arabias economy. Even
from Qatar, a whopping QR33 billion was
transferred to destinations abroad through
various exchange houses during the first
half of this year. Qatars forex market too
has registered annual growth rates of 15-20
percent, one of the highest in the world.
Remittance may be the natural thing to do
for those earning in the region and funding
families back home, but it is the idea of
taking loans to reap immediate harvest that
is beset with dangers. Financial advisors
say the consequences of taking such a
decision could be understood just by doing
plain arithmetic. Even if the rupee was
around Rs50 to the dollar last year and
someone took a loan to put as fixed deposit
in India, he may have earned 10 percent
interest. But now at Rs68 per dollar the
currency is devalued by 26 percent, says an
exchange manager based in the UAE. This
means a loss of 16 percent plus whatever
loan interest being paid in the Gulf. More
importantly, if you lose your job here, you
will not be allowed to travel unless you pay
back the whole sum, he said. Clearly, risks
far outweigh the rewards.
Key sectors such as information technology,
pharmaceutical and textiles will benefit from a higher
dollar value as bulk of their revenues come from
overseas markets
bq | FINANCE l CONSUMER LENDING
www.bqdoha.com
14
There is a rise in consumer loans despite banks having
burnt their fingers in the pre-crisis days due to being
'dangerously liberal' with lending
By Rohan Soman, Doha
Qatar
Getting
More
Personal
An Asian expatriate, in need of QR35,000 to buy a used car in August 2013, decided to shift
his account from an Islamic bank where his salary was transferred, to a bank that would give
him a loan. Islamic banks dont give away loans in cash since interest-based credit is forbid-
den by the religion. But when the gentleman told the bank why he was moving his account,
he was pleasantly surprised to learn the bank was willing to process his loan request.
True to its word, the bank granted him the loan within a few days, and even insisted he take
a bigger amount. The expatriate, a long-time customer of the bank, politely declined the
offer. With little understanding of the intricacies of how the banking industry here oper-
ates, the young man had no idea that the bank might have given away the QR35,000 loan,
perhaps, after showing some transactions on paper in his name - either as a purchase or
sale of stocks or gold.
In the days preceding the onset of the world financial crisis in 2008, it is quite well known
how liberally banks in Qatar were with loans. Personal loans being a highly lucrative segment
of their business, banks competed with one another fiercely to woo potential borrowers.
The Shariah-compliant banks felt left out as they couldnt openly dispense credit on inter-
est. It was easier for them to grant a car loan or a loan for jewellery, for instance, as they
would simply buy a car or jewellery and hand it to the customer for an uptake that would be
their margin. But at least one Islamic bank, in those days as well, gave away personal loans
in cash in its own roundabout way.
A customer of the bank who borrowed about QR100,000 in those days told bq all the bank
did was that it bought stocks in his name and sold them the same instant and credited into
this account the cash. I made a loan request and within days got an SMS that the money
was in my bank account, he said.
Going Islamic
Banking industry sources argue whether or not an Islamic bank should lend at all irrespec-
tive of the interest issue - as borrowing from them is easier and cheaper. Conventional
banks literally pick your pocket. They charge very high interest rates, said a banking indus-
try source. Shariah-compliant banks, on the contrary, have marginal uptakes and are quite
customer friendly, he claimed.
bq | FINANCE l CONSUMER LENDING
www.bqdoha.com
15
Rightly so. As an example, the expatriate
who borrowed QR35,000 from an Islamic
bank swore he has to simply pay some
QR2,000 extra over two years, which is the
tenure of the loan. That works out to less
than three percent interest a year.
Another expatriate who took a loan of
QR50,000 from a conventional bank in
August 2010, for instance, said he was
paying it off in equated monthly instal-
ments of QR1,813 over a three-year tenure.
This means that in the 36 months until
July 2013, I would have paid off a total of QR
65, 268. That is QR 15,268 over the actual
sum borrowed. In other words, the borrower
would be paying as interest nearly a third of
the amount he took as loan - more than 10
percent annual interest.
A banking industry source, though, disputed
the borrowers claim and said no bank can
now charge more than six percent annual
interest on personal loans. The rule was
brought into force by banking regulator,
the Qatar Central Bank (QCB), in early 2011.
I am sure if the borrowers EMI (equated
monthly instalment) was not reduced by
the bank, the loan tenure must have been,
to adjust the higher interest amount that
might have been reduced following the
QCBs 2011 directives, said the source. But
the borrower insisted he had so far heard
nothing from his bank regarding interest
reduction or loan tenure adjustment.
As is known, banks worldwide came under
tremendous pressure following the global
economic meltdown in 2008. And although
banks in Qatar remained the least affected
by the crisis, the government nonetheless
propped them up with bail-outs totalling
over 15 billion dollars.
By June this year, loans
given away to the private
sector totalled a whopping
QR263 billion, or 72.22
billion dollars. Of this,
exposure to real estate and
individuals alone amounted
to QR171.3 billion
The risky lending activities of the indus-
try came to a standstill, and that hit the
consumer loans segment hard. Lending to
individuals nosedived in 2009 as a result.
That was also the year when banks were
asked by the QCB to make increasing provi-
sions for bad and doubtful debts. The indus-
trys profitability suffered. Banks suffered
recovery-related woes and many expatriate
borrowers defaulted on loans and fled the
country. Car loans remained outstanding
and unpaid in a large number of cases.
Lending though, improved over the
Photography: Bosco Menezes
bq | FINANCE l CONSUMER LENDING
www.bqdoha.com
16
following years, caution remained the
operative word in the banking industry.
Banks turned highly selective and placed
conditions for lending a large number of
customers found hard to meet.
Following Qatars win in late 2010 in the
coveted bid to host the 2022 FIFA World
Cup, the industry shifted its focus on lending
to other sectors and activities. Key among
them were the real estate market that was
in the dumps in the aftermath of the global
financial crisis, and project financing. This
was essential to do since mega development
projects were to be launched for the FIFA
event, said a banking industry insider.
And as the GDP showed signs of a slow-
down by 2012-end due to energy projects
achieving their peak production capacities,
the QCB, as a matter of policy, encouraged
the banking sector to back up the non-hy-
drocarbons sector to offset the slackening
economic growth.
Change of season
Surprisingly, though, QCB data released
recently for June 2013 showed there was
a sudden spurt in consumer loan volumes,
while lending to the real estate sector fell.
So prized was consumer lending for banks
until 2008 that it remained the industrys
darling for several years. Real estate pushed
the segment behind in the years after the
world financial turbulence.
In June 2013, however, personal loans
dispensed by banks showed a jump of
QR5.6 billion (USD1.53 billion). Total lend-
ing to this segment stood at an impressive
QR74.3 billion (20.4 billion dollars). Still,
the segment lagged behind the real estate
sector whose total debts were a massive
QR97 billion, or 26.63 billion dollars by June.
An interesting highlight, however, was that
in that month (June 2013) lending dispensed
to the real estate sector fell marginally - by
about QR200 million. As there are indica-
tions that banks have resumed focusing
on personal loans, the day shouldnt be far
when this segment emerges as their top
lending activity again, said the industry
insider. Or, it may in the least run parallel
to the property market in terms of the
most preferred lending segment, the insid-
er insisted.
A rise in consumer loans despite banks
having burnt their fingers in the pre-crisis
days due to being dangerously liberal in
lending, is attributed by industry insiders to
a number of factors. Peoples income levels
are going up, and the population is increas-
ing. More professionals and technocrats
are coming in from overseas needing urgent
cash. The first thing they do is rent homes
and buy cars, said another insider. Banks are
seizing the opportunity. Its a give and take.
Giving away a loan to a borrower in need is a
service to society, but, yes, admittedly its a
profitable service for banks.
By June this year, loans given away to the
private sector totalled a whopping QR263
billion, or 72.22 billion dollars. Of this, expo-
sure to real estate and individuals alone
amounted to QR171.3 billion. In other words,
these two segments together had a share
of more than 65 percent. Other key sectors,
among them, manufacturing (industry),
which is crucial to Qatars economic diversi-
fication effort, and financial services - a fast
growing industry - suffered as lending to
them was poorer. In the third spot after real
estate and personal loans was the service
sector, which received total loans worth
QR42.3 billion (11.8 billion dollars) with an
increase in lending in June by QR4.3 billion
(1.18 billion dollars).
Trading ended at a poor fourth with a total
exposure of QR33.5 billion, or 9.19 billion
dollars. Lending to this segment fell in
June by QR1.1 billion (302 million dollars)
apparently due to this being a peak summer
month when business is lean.
''Conventional banks
literally pick your pocket.
They charge very high
interest rates. Shariah-
compliant banks, on the
contrary, have marginal
uptakes and are quite
customer friendly"
Photography: Bosco Menezes
bq | FINANCE | MUBADALA IN SERBIA
www.bqdoha.com
17
Abu Dhabi investment fund Mubadala is one of a number of UAE companies
expected to make big investments in Serbia with one project alone a
semiconductor fabrication plant estimated at $3 billion
By Tina Isanti, Ljubljana
Europe
Capital Import
Foreign direct investment (FDI) in Serbia
exceeded EUR 500 million in the first half
of the year, National Bank of Serbia reports
and according to the director of the Serbia
Investment and Export Promotion Agency
(SIEPA) Boidar Laganin, it is realistic to
expect foreign direct investments (FDI) will
exceed a billion euros this year. We are not
satisfied either with the results to date in
attracting FDI, or the expected inflow for
all of 2013, and everything tells us that a lot
of work is needed to achieve an FDI inflow
which would fully satisfy Serbias needs at
this level of development, Laganin said in
an interview with Tanjug. The SIEPA direc-
tor is of the opinion that a satisfactory level
Bilateral trade last year
reached 23.3 million, a
small figure compared to
agreements signed this year
bq | FINANCE | MUBADALA IN SERBIA
www.bqdoha.com
18
of FDI would be around EUR 2 billion a year,
or approximately five percent of the GDP.
A goal that could be reached already next
year. Among the most lucrative projects
scheduled for the near future, Laganin
highlights several large investments already
agreed upon with investors from United
Arab Emirates (UAE).
Mubadala to help boost Serbian
economy
Among the biggest investors from the Gulf,
Abu Dhabi investment fund Mubadala could
easily be the most important. Business
talks that started only in January are
already bearing serious fruit. Vice president
Aleksandar Vucic announced that Mubadala
may invest about USD 4 billion into vari-
ous projects in Serbia in the coming years.
The last visit from the UAE delegation in
August has brought the finalization of the
agreement on the companys first invest-
ment in Serbia, a few hundred million dollars
in the IT field. The final amount invested
would reach up to 4 billion in the coming
years. Bilateral trade last year reached
23.3 million, a small figure compared to
agreements signed this year. Weve grown
our level of commercial exchange between
the UAE and Serbia five times, but Im
absolutely sure it will increase 50 times,
said Vucic.
Mubadala is reportedly interested in the
fields of renewables, gas power plants, prop-
erty, aerospace and telecommunications as
well. Blic newspaper reported Mubadalas
interest in building the telecommunication
infrastructure, e.g. network of base stations,
which they would later rent to operators.
They were also interested in the govern-
ments intention to announce the tender
for 4G mobile telephony licence by the end
of the year.
Two new factories for a start
Since February the Mubadala teams have
made multiple visits to Serbia, to assess
the EU candidate countrys capability in the
IT sector, since the first two investments
planned are a high technology research
center and a semiconductor fabrication
plant (computer chip factory). In August
Mubadala Development chief operating
officer Waleed Al Mokarrab Al Muhairi
himself has made sure Serbia was the right
choice for a chip factory worth four billion
dollars, before making the decision final.
The main concern has been the lack of
qualified staff and experts. Serbia does
have IT experts but not in sufficient number
as somewhere between a thousand and
two thousand shall be needed. Professor
Branko Kovacevic, faculty of Electronics, is
convinced that the three years time, in which
the factory is to start operating, should
suffice to educate the lacking personnel.
We are waiting for the green light from the
government to start preparing the neces-
sary programs and we are already working
on Serbian diaspora, former students and
other Serbian nationals that could be of
help should we need them.
Although Mubadala spokesperson declined
to comment on the specifics of the latest
trip to Belgrade and said the visit is part
of ongoing discussions across a range of
sectors, Serbian officials are more than
optimistic. Mubadala is bringing unprece-
dented investment and high technologies
to Serbia. This is going to make fast and
targeted IT development possible and will
open a few thousand jobs for our IT experts.
Serbia could become one of the technolo-
gys leaders, said Mladjan Dinki, minister of
finance. He also stressed the governments
preparedness to accept all conditions and
remove all administrative obstacles to
facilitate UAEs investment in the country.
Another sign of strengthening relations
between the two countries is the decision to
set up embassies in both capitals.
Mubadala is reportedly interested in the fields of
renewables, gas power plants, property, aerospace and
telecommunications as well
Mladjan Dinki, Serbian minister of fnance
Serbian vice president Aleksandar Vucic
bq | FINANCE l IN CONTEXT
www.bqdoha.com
19
GCC inflation accelerates
Consumer Price Index (CPI) inflation in the
GCC has accelerated since mid-2012,
although, at 2.9% in May 2013, it remains
well below the double-digit levels reached
in 2008. According to QNB Group, GCC
inflation is likely to stabilize at a moderate
level around the 3% mark in the near term
as higher increases in housing costs are
offset by lower food price rises. This
compares with global inflation average
3.8% and MENA inflation of 9.3%
in 2013-14.
Historically, GCC inflation has been low
until rising oil prices and an economic
boom pushed inflation higher in the 2000s.
Strengthening non-oil growth and
expanding population will give prices,
particularly rents, some upward impetus.
However, this is likely to be
counterbalanced by falling global food
prices, which will make food imports
cheaper and hold back inflation.
Additionally, oil prices are expected to be
slightly lower in 2014, easing inflationary
pressures in the GCC.
Arcapita Bank sells 3PD
Bahrain-based Arcapita Bank has
announced the sale of 3PD Holding Inc.
(3PD), a logistics company in the US and
Canada, for USD 365 mn. 3PD was acquired
by XPO Logistics Inc., a transportation
logistics company serving North America.
Arcapita acquired a majority stake in 3PD in
2006 as a growth asset that offered
significant opportunity due to the
fragmented and growing demand for
last-mile services in North America.
Following the acquisition, Arcapita provided
investment capital to 3PD and its portfolio
managers worked closely with the founders
and management to develop and deliver a
strategy that propelled the business to a
market leadership position despite a
weak economy.
bq | FINANCE l IN CONTEXT
www.bqdoha.com
20
Alpari redefines online trading education
In response to the increasing demand of
Middle East investors looking to broaden
their understanding of trading
opportunities, Alpari UK, a global online
currency and commodity broker, has
introduced its concept of Alpari Academy to
the region, seeking to equip aspiring as well
as professional stock traders with the
expertise required for managing online
trading portfolios profitably.
Alpari Academys four-level training course
is available in Arabic and English in the
MENA region. Level one offers an
introduction to the basic fundamentals of
forex and commodity trading. Level two
focuses on technical analysis, while level
three tackles the microeconomic aspects of
the market and their impact on trading. The
conclusive (fourth) stage deals with
portfolio risk management. Participants
above the age of 18 years are offered the
option to enrol for the course in the
conventional classroom format or through
a webinar. Each level consists of
approximately seven hours of coaching
spread across five consecutive working
days. The format allows participants to
complete the entire course in the span of
one month.
ME retail bank of the year
Al Hilal Bank was named the Middle East
Retail Bank of the Year at the recently
concluded 2013 Retail Banker International
Awards, besting a highly competitive field
and emerging triumphant under the
prestigious international award organized
by market intelligence firm Timetric. The
annual Retail Banker International Awards
honours retail banking excellence under the
North American, European, African, Middle
Eastern, Latin American, Asian and Global
categories. Al Hilal Bank was chosen as the
best retail banking institution in its region
due to its high level of sustainable
profitable growth, exceptional
professionalism, and excellent
representation of industry in the eyes of
the public and regulators.
StanChart partners with IILM
Standard Chartered Bank recently helped
close a landmark inaugural sukuk bond
issuance from the International Islamic
Liquidity Management Corporation (IILM),
the worlds newest supranational. The bank
is a primary dealer for the USD 490 million
short term sukuk and is the only global
bank in IILMs primary dealer network.
Standard Chartered was nominated by the
Central Bank of Nigeria, which is one of
IILMs Governing Board members. The
landmark issuance carries an A-1 rating by
Standard & Poors and is backed by Shariah
compliant sovereign assets. It is the first
tranche of an approved USD 2 billion
programme by the IILM to create US dollar
cross border liquidity instruments for use
by Islamic financial institutions globally.
For subscriptions to bq magazine, please visit bqdoha.com
bq | FINANCE l IN CONTEXT
www.bqdoha.com
21
Domestic medical plan for workers
Employers of the UAEs privately sponsored
400,000 domestic workers can now insure
their drivers, cooks, cleaners, maids, or
gardeners against illness, accidents, or loss
of life, with the launch of the Domestic Aid
Medical Plan (DAMP) by Noor Takaful, the
Islamic insurance arm of Noor Investment
Group (Noor). The DAMP bundles two
offerings, within one easy to obtain
package, that provides domestic workers
with up to AED50,000 medical insurance
coverage, plus an additional capital sum of
AED50,000 in the event of loss of life.
The DAMP is the first product to be
launched under Noors Noor Popular
umbrella, an innovative, Sharia compliant,
banking service specifically tailored for
blue collar workers. Initially, the DAMP will
be available in Dubai and the Northern
Emirates. Noor Takaful plans to roll out the
plan in Abu Dhabi later this year.
NBAD safest bank in
ME
International finance magazine, Global
Finance, ranked NBAD for the fifth
consecutive year in its Worlds 50 Safest
Banks. NBAD remains the highest ranked
Middle East bank in the list. Global
Finances annual ranking of Worlds 50
Safest Banks is a recognised and trusted
standard of creditworthiness for the entire
financial world. The continuous inclusion
of NBAD among the Worlds 50 Safest
Banks reflects our disciplined strategy and
on-going focus on long term, sustainable
growth, says Alex Thursby, group CEO of
NBAD. NBADs continued strong credit
ratings complemented by its ranking
among the Worlds 50 Safest Banks are an
invaluable asset that will serve our
ambitious growth plans, including our
strategy to be a leading player in the
West-East Corridor.
FDIs in GCC increase
According to data published by UNCTAD in
their annual World Investment Report
2013, this brings to an end a period of
three consecutive years of declining FDI
flows to the region since the pre-financial
crisis peak of USD 61.7 bn in 2008. The
GCCs positive performance is further
accentuated when placed in the context of
developing economy and world FDI flows,
both of which declined in 2012, by 4.4 and
18.2 percent, respectively. The GCC
increased its share of developing economy
FDI to 3.8 from 3.6 percent, said
the report.
Within the GCC, in 2012, FDI flows to all the
countries with the notable exception of
Saudi Arabia increased over the previous
year. However, Saudi Arabia despite
witnessing a 25 percent decline in FDI,
remains the most attractive destination for
foreign investment in the Arab world. NBK
said: In the UAE and Kuwait, FDI inflows
increased in 2012 to USD 9.6 bn and USD
1.9 bn, respectively. In Kuwait, the doubling
of FDI was primarily the result of Qatar
Telecoms acquisition of additional shares
in mobile operator Wataniya.
GCC bond outlook healthy in H1, 2013
The stock of GCC bonds, both conventional
and sukuk, increased healthily during the
first six months of the year, according to a
report released by the National Bank of
Kuwait (NBK). Private sector issuance
maintained a strong pace, dominating the
GCCs fixed income activity, driven by the
non-financial sector, which also experienced
its best six months yet. The stock of
outstanding GCC fixed income instruments
rose to USD 239.8 bn at the end of H1 2013.
The balance of outstanding bonds was up
USD 19.2 billion and 15.3 percent against a
year ago. The leading debtors are the
Qatari public sector (23 percent), the UAE
financial sector (16 percent) and the UAE
public sector (15 percent). Among non-
financial private issuers, Saudi Arabia
sector is the most active with 10 percent of
all outstanding GCC debt, followed closely
by the UAE
A B2B platform
bq invites all businesses,
through its In Context
section, to announce their
latest tenders, products,
services, events and news.
Please email the information, with an
accompanying high-res image, to
editor@bqdoha.com.
DQG renews collaboration with NBC
Dubai Quality Group (DQG), a non-profit
organisation that advances learning and
promotes quality improvement and
business excellence practices, has recently
renewed its collaboration with investor
partner National Bonds Corporation PJSC
(NBC), a unique UAE leader in offering
sharia compliant and rewarding savings and
investment schemes. The move follows the
successful two-year partnership that saw
National Bonds Corporation effectively
support the initiatives of DQG to facilitate
Dubais drive for quality.
The discussions looked into specific
programs and initiatives offered by DQG
that contribute to sustaining the quality of
NBCs performance. On its part, National
Bonds Corporation offered
recommendations on DQGs services in
accordance with its expanded scope of work
as part of a strategic aim to enhance its
offerings to stakeholders. National Bonds
provides UAE nationals, UAE residents and
non-residents with a credible and safe
savings opportunity. Minors can also own
National Bonds.
bq | INFRASTRUCTURE l MALLS
www.bqdoha.com
22
There are plans for 14 new malls in the country by
2015 to add to the existing 14. A report exploring
Qatars retail scenario
By Rajeev Acharya and Shereen DSouza, Doha
Qatar
Its A
Mall World
After All
bq | INFRASTRUCTURE l MALLS
www.bqdoha.com
23
After the 14 new malls
come up and kick-start their
business by 2015, they will
be adding 1,158,000 sqm
of additional GLA, taking
the GLA per capita (per
person) to 0.86 sqm
When work on Qatars first mall - rightly called The Mall - began in early 1996, the concept
was new to the region, and had just begun being exported out of the US into Asia and the
Middle East after nearly four decades of having revolutionised consumerism in the worlds
largest economy.
Qatars population at the time was less than 700,000, the economy was just 8 billion dollars
in size and per capita income, though still high at about 16,000 dollars, was nearly a seventh
of what it today is.
In the past 17 years, Qatar has undergone a near-total facelift, with a population that has
trebled, and an economy that has swelled the most - an unbelievable 25 times. The tradition-
al marketplaces, some of which were the souqs, while others, busy retail streets patronised
chiefly by low and middle-income expatriates, are mostly history now. They have given way
to what some prefer to describe as the modern temples of consumerism - the mushrooming
malls and hyper-markets.
The skyline of the capital city of Doha has changed in this past decade or so, dotted with
Manhattan-like skyscrapers. And so has undergone a sea change the income profile of the
people here - more so of the locals whose earnings have soared as though through magical
financial windfalls, thanks to the immense gas-fuelled wealth of their state and its largesse.
What has probably not changed in all these years is that low and limited-income foreign
workers continue to outnumber all others in the countrys demographic mix.
bq | INFRASTRUCTURE l MALLS
www.bqdoha.com
24
Qatars first mall, when it opened, attracted
a number of celebrated high-end inter-
national brands, among them, jewellers,
boutiques, and other retail outlets. It
instantly turned out to be a favourite desti-
nation, more so of upper-middle income
and rich Qataris. And while anchor stores
in other malls today complain of dwindling
sales, outlets in The Mall swear they large-
ly remain unscathed by an increasingly
Darwinian retail environment in Doha due
to what they call loyal customers.
The City Centre was the second mall to open
some three years later, in late 1999, and it
became quite popular with people in middle
and upper-middle income categories, both
nationals and expatriates. That was also the
time when income levels of citizens had just
begun to rise, although it was not until a few
years into the next decade, that also herald-
ed the dawn of a new century, that Qatari
society actually began turning prosperous.
The City Centre, too, attracted various
famous global brands of different product
lines, but Carrefour setting up its oper-
ations here made the place a household
name. Anchor stores here are known equal-
ly for attracting people with middle-income
profile who throng the place looking largely
for promotions, as well as high-spending
individuals and families. The City Centre,
being a vast property, was the first to intro-
duce amusement/indoor play areas as an
added attraction for families and children.
Call of the malls
According to a retail marketing expert*,
the concept of malls became a hit in Qatar
primarily for two reasons: weather condi-
tions and a severe lack of public enter-
tainment facilities in the country. People
began visiting malls to shop and to spend
time in a large, safe and enclosed air-condi-
tioned environment. There would be crowds
during the weekends. They were especially
favoured during the hot and humid summer
months, said the expert.
It is no wonder, then, that despite Qatars
population being small and more than
half of it comprising low-income workers,
there are 14 malls in the country present-
ly, according to Tamween, a development
management consultancy and subsidiary
of state-backed real estate giant Barwa.
And another 14 malls are in the pipeline and
likely to throw open their doors for business
by 2015, Tamween said in a real estate
report on Qatar released in mid-2013.
Since most of the existing malls are located
in Doha and its immediate surroundings,
the developers of the new malls have made
it a point to scatter them in areas witness-
ing massive population growth a little
outside of the capital city. Two very busy
malls, Landmark and Ezdan, for instance,
are located in Al Gharraffa, a far-flung Doha
suburb where the Qatari population has
bq: What is the retail leasable space available?
DW: Mall of Qatar is one of the most significant developments under construction in the
GCC with over 2 million square feet of retail leasable area on three levels in addition to a
planned 250 room premium brand hotel. This unique shopping and entertainment
complex is scheduled to open in the 3rd quarter of 2015. It will have an exciting mix of
over 400 shops, restaurants and cafes from around the world, a cinema and other
entertainment venues that are currently under development. We will be making some
major announcements very shortly. We are confident Mall of Qatar will appeal to all of
Doha and surrounding areas. As our name suggests as the nations mall, we intend
to build the brand as an international attraction and will direct much of our marketing
efforts to present Qatar to the world.
Donald Weir, general manager of the Mall of Qatar, one of the most ambitious mall
projects underway in the country, gives bq updates on the development
bq | INFRASTRUCTURE l MALLS
www.bqdoha.com
25
bq: With so many malls coming up in Qatar, what is the competition going to
look like?
DW: That is something that any developer has to be aware of, but currently statistics
show that the Qatar market is vastly under-retailed. This is the reason why such an
ambitious project as the Mall of Qatar was planned. Qatar had the highest population
growth in the world in 2012 and has ranked in the top 20% consistently over the previous
five years. The last regional shopping centre was completed in Qatar in 2006. The rapid
population growth, along with increased tourism, has given a tremendous opportunity
for developments like the Mall of Qatar to succeed. In addition to this expanding market
and the tremendous products we are putting together, our adjacency to a future World
Cup Stadium in Al Rayyan and a dedicated station on Dohas new Metro Line, just minutes
away from Education City and downtown, will help give our project a competitive edge.

bq: When are all the shops expected to be occupied and what kind of business can
be expected?
DW: Although we announced the project at Cityscape Qatar, only a few months ago, we
have had an overwhelming response from the retail community to date. Mall of Qatar
has a highly skilled team of international and local professionals putting together the
merchandise, food and entertainment mix and we are projecting to be substantially
leased on opening. We are projecting over 20 million customers annually and sales in
excess of QR 4 billion in our first year. This will partly come from new consumer demand
and partly from the attraction of the new shopping and entertainment experiences we
will be bringing to Qatar.

bq: Many existing malls appear to have unleased shops. Do you foresee this as a
problem for Mall of Qatar?
DW: We believe retailers strategically position themselves. Just because you build a
shopping centre, doesnt mean youll fill it. Mall of Qatar is being put together by a
talented group of world-class professionals. and that goes far beyond just the bricks
and mortar. That special experience for the customer will start as soon as they drive into
the parking lot. Unlike many other shopping centres in the GCC, it will be lushly
landscaped and a mall that is externalized and turned inside out. The inside is anchored
by a triple height promenade of shops down the centre spine opening out into a colossal
domed area with restaurants and entertainment venues overlooking it on all three levels.
This area will be highly programmed. Size does matter, and with its over 400 shops in all,
from luxury to the worlds leading powerhouse brands and an exciting array of food and
beverage, we are confident it will make Mall of Qatar the premier destination in
the nation.
One of the most ambitious
mall projects underway in
the country is Mall of Qatar.
Once ready for business by
the third quarter of 2015,
it will add over 2 million
square feet of retail leasable
space on three levels
recently been spreading out.
It is interesting to note that of the 14 exist-
ing malls, two - Villaggio and City Centre -
account for over 42 percent of retail space
supply in the organised retail sector (in
terms of space they offer to retailer-ten-
ants). Organised retail space (that malls
offer) presently extends to about 650,000
square meter of gross leasable area. The
demand for retail space in the malls is high
and far exceeds supply.
Tamween said that after the 14 new malls
come up and kick-start their business by
2015, they will be adding 1,158,000 square
meters of additional gross leasable area
(GLA), taking the GLA per capita (per
person) to 0.86 square meter, that is,
slightly less than one square meter. This
will still be lower than regional benchmarks
such as those in neighbouring Dubai and
Abu Dhabi. The GLA per capita of shopping
malls in the aforementioned two cities
are 1.4 and 1 square meter, respectively,
said Tamween. These cities are literally
peppered with malls.
One of the most ambitious mall projects
underway in the country is Mall of Qatar.
Its general manager, Donald Weir, says once
ready for business by the third quarter of
2015, it will add over 2 million square feet of
retail leasable space on three levels. Ours
is one of the most significant developments
under construction in the GCC, Weir told
bq in a brief interview. Weir said their plan
was to make Mall of Qatar an international
attraction.
Low brand penetration
According to Tamween, occupancy in the
existing malls is dominated by local or
regional franchisees of some of the most
reputable international brands. This is
because local rules require that a foreign
retailer must enter Qatars market via a
joint venture with a local or GCC partner.
Nevertheless, the Qatari malls presently
have a limited number of global brands,
said Tamween in its report. These brands
tend to have multiple outlets and cater
to the mid to high-end income segments.
Brand penetration in Doha is not as high
Photography: Bosco Menezes
bq | INFRASTRUCTURE l MALLS
www.bqdoha.com
26
Name of Mall
Total area
(sqm.)
Cost of Project
Leasable retail
space (sqm.)
Car parking
Likely completion/
Launch date
Doha Festival City
Mall of Qatar
North Gate Mall
Tawar Mall
Marina Mall Lusail
Al Markhiya Project
Barwa Commercial Avenue
Barwa Al Doha
Msheireb Downtown Doha
Al Mirqab Mall
Qanat Quartier
Doha Mall
Gulf Mall
Ezdan Mall
QR 6 bn
QR 3 bn
USD 290 Mn
QR 1.8 bn
QR 1 bn
QR 7 bn
QR 2.4 bn
QR 20 bn
QR 600 mn
433,000
388,000
375,000
106,000
180,000
55,000
910,000
324,000
310,000
220,000
400,000
138,810
160,000
Over 260,000
Over 185,800
Over 145,000
82,500
105,000
36,000
56,600*
90,000*
42,000*
79,900
Over 40,000
8,500
7,000
4,000
2,800
2,200
1,400
12,000
2,800
11,700
2,900
1,500
1,800
Q4 2014
Q3 2015
2014
Q4 2014
2015
Q3 2013
Q4 2013
2015
Q4 2015
40% open
* indicates mall area
Distribution of retail spaces in malls
Slots for car parking in malls
Leasable retail area in malls New malls at a glance
Available retail constructed
space
Mall infographics (data source: AREDC Research)
data source: AREDC Research
Total leasable area (sqm) in malls
2%
2%
3
%
4
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4
%
5
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6
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Unorganised
retail outlets
Malls Souqs
Hypermarkets
The Mall, 600
City Centre, 1600
Villaggio Mall, 3000
Hyatt Plaza, 1080
Landmark, 1309
as regional benchmarks, and this is because
the market still has not reached maturity,
particularly on the supply side, added
the report.
According to observers of the local retail
business, although Qatar is the worlds
richest country with a per capita income
that exceeds 100,000 US dollars, a major
reason for low brand penetration could be
that most people here tend to do most of
their shopping overseas.
While the wealthier among the Qataris like
to shop in the west, including London, Paris,
Geneva and Milan, among others, middle-in-
come Qatari families rush to destinations
like Thailand and Malaysia on holiday/
shopping expeditions. Beirut, once a popu-
lar destination, has gotten less so with the
recent tension in the region.
Many among the Arab expatriates in upper
and middle-income brackets are highly
brand conscious, but according to commu-
nity sources, most of them prefer to shop
online. Asians, on the other hand, even if
they are brand-conscious and have high
disposable income, mostly look for promo-
tions to shop locally, or do it while on vaca-
tion in their home countries. Expensive
brands here suffer as a result, the retail
trade observer said.
True. Interviews bq conducted with sales
outlets in various malls confirmed their
business was not so brisk or exciting. (Sales
personnel of these outlets agreed to speak
on the condition of anonymity insisting
they were not authorised to talk to media,
and said their outlets names must also not
appear in print as that could harm their
business.*) The interviews revealed the
problem is so severe in some malls that
sales staff employed by some outlets fear
low business could even cost them their
jobs. But such cases were indeed rare and
exceptional.
A salesman at a store selling high-end
white gold, sapphire and other precious
stones and jewellery in an equally famous
mall said business was okay. He added,
Our customers are mostly Qataris and we
do good business with them because our
products are high-priced. He, however,
added their store in another mall did better
business because of its location.
In the same mall, a sales employee of a
branded store for bags and cosmetics said
that people came to them mostly during
promotions. Otherwise, it is only Qataris
who come to us, and on weekends some
expatriates like Indians and Filipinos stray
into our shop. Asked about new malls
coming up, the salesman said he didnt know
if they could survive. But we are sure to be
affected. Right now, we are more worried
about our jobs.
A sales girl of a famous anchor store of a
global brand of organic products said, We
Photography: Geraldine Menezes
bq | INFRASTRUCTURE l MALLS
www.bqdoha.com
27
Name of Mall
Total area
(sqm.)
Cost of Project
Leasable retail
space (sqm.)
Car parking
Likely completion/
Launch date
Doha Festival City
Mall of Qatar
North Gate Mall
Tawar Mall
Marina Mall Lusail
Al Markhiya Project
Barwa Commercial Avenue
Barwa Al Doha
Msheireb Downtown Doha
Al Mirqab Mall
Qanat Quartier
Doha Mall
Gulf Mall
Ezdan Mall
QR 6 bn
QR 3 bn
USD 290 Mn
QR 1.8 bn
QR 1 bn
QR 7 bn
QR 2.4 bn
QR 20 bn
QR 600 mn
433,000
388,000
375,000
106,000
180,000
55,000
910,000
324,000
310,000
220,000
400,000
138,810
160,000
Over 260,000
Over 185,800
Over 145,000
82,500
105,000
36,000
56,600*
90,000*
42,000*
79,900
Over 40,000
8,500
7,000
4,000
2,800
2,200
1,400
12,000
2,800
11,700
2,900
1,500
1,800
Q4 2014
Q3 2015
2014
Q4 2014
2015
Q3 2013
Q4 2013
2015
Q4 2015
40% open
* indicates mall area
Distribution of retail spaces in malls
Slots for car parking in malls
Leasable retail area in malls New malls at a glance
Available retail constructed
space
Mall infographics (data source: AREDC Research)
data source: AREDC Research
Total leasable area (sqm) in malls
2%
2%
3
%
4
%
4
%
5
%
5
%
6
%
7
%
1
0
%
1 0 %
2
1
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2
2
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7
0
%
1
8
%
7
%
5%
Unorganised
retail outlets
Malls Souqs
Hypermarkets
The Mall, 600
City Centre, 1600
Villaggio Mall, 3000
Hyatt Plaza, 1080
Landmark, 1309
have highs and lows. We have a weekly sales
target of QR130,000 that is impossible to
meet most times. The good thing, though,
is that those who come to us are regulars
and our loyal customers. The locals travel
overseas for shopping a lot, she said. But
they cant travel round the year, so they
come here.
A sales girl at a boutique in another mall
said theirs was an exclusive brand so they
wouldnt suffer if the new malls came up.
But surely, apparel brands could be in for
trouble. An employee of a branded bags
and shoes store in yet another mall said
they were doing good business when, due
to a fire incident a famous mall was closed
down temporarily.
The manager of a store selling watches,
jewellery and cuff-links, among other such
items, in a mall said they mostly relied on
household shoppers from nearby areas,
including the working class suburb of Al
Aziziya. We wouldnt be affected by the
new malls because of our loyal clientele,
said the stores manager in a confident tone.
Market sources say the demand for retail
space in the malls is high, and that explains
why monthly rent prices in the upcoming
malls carry a premium of up to 30 to 40
percent. The asking rates are in the range
of QR200 to QR250 per square meter
currently, it is learnt. Most mall developers
say despite the premium, response from the
retail community is quite encouraging.
A severe shortage of strip retail space
(independent shops or shops in smaller
commercial places) and removal of some
main commercial streets from Doha due to
a string of development projects, has also
led to an increase in their rent prices. In
newly-built commercial premises supplying
strip retail space, therefore, the rates are
almost the same - up to QR220 per square
meter a month.
And, interestingly, the expected growth in
the population suggests there will be more
people here with low to medium disposable
income profiles, so the demand for strip
retail could jump considerably.
However, the fact remains that the high-
er-income and affluent people in any society
are always in a minority, and so are they in
Qatar, but being high spenders they can, no
doubt, actively support and patronise the
high-end malls. So, observers say it should
be quite interesting to watch how the retail
scene in Qatar unfolds in the years to come.
That would also be the time of the excited
run-up to the much-anticipated FIFA 2022
event, during which tens of billions of dollars
are to be spent on infrastructure develop-
ment that would heat up the economy and
see a heavier influx of foreign workers.
bq | COVER STORY | CONSTRUCTION COSTS
www.bqdoha.com
28
Qatar
bq | COVER STORY | CONSTRUCTION COSTS
www.bqdoha.com
29
Construction material costs have been steady the past few years under the
cautious eye of the Ministry of Business and Economy. But as more projects are
awarded next year in the run-up to the 2022 World Cup, will the events of
2006-08 be revisited?
By Rohan Soman, Doha
Qatar witnessed hectic construction activity in the years preceding 2006, and public
memory of how prices began shooting up undeterred as the Asian Games approached that
year and even later, is still fresh.
Many still blame rising prices of basic raw materials used in the building industry as a major
factor that contributed to soaring house rents that led to record inflation, particularly after
the 2006 Games. But it is true only in part that basic raw materials becoming expensive due
to unprecedented shortages pushed up construction costs, and prompted developers and
property owners to hike rentals.
Much of the blame for the escalating cost of living that was caused by spiralling rents, should
actually go to the large-scale demolitions in Doha that were carried out to make way for
development projects that triggered massive housing shortages. It was just a coincidence
that the demolitions, whereby thousands of people were out looking for alternative rented
accommodation, preceded the 2006 Asian Games, said a construction industry insider.
He insisted, it is, therefore, not right to fear that inflation might peak again in a nightmarish
reminder, especially of 2008 when the price rise was a back-breaking 15 percent. There are
no demolitions this time, at least not at the earlier scale, and housing supplies are comfort-
able, the insider remarked.
But fears are nonetheless being raised by real estate market operators and experts that if
building materials prices are not kept under check, peaking demand in the run-up to the
2022 World Soccer event Qatar is hosting, could lead to a repeat of 2008. Those in trade
and industry, and the public in general, are looking up to the state to keep the prices of
construction materials under control.
Between 2013 and 2017,
the demand for cement
is estimated at 57 million
tons; that for washed sand,
101 million tons; 364 million
tons of aggregates; 514
million tons of limestone;
10 million tons of bitumen;
36 million tons of ready-mix
concrete; 166 million tons
of soil removal and disposal,
46 million tons of asphalt
and 9.2 million tons of
pre-cast concrete
bq | COVER STORY | CONSTRUCTION COSTS
www.bqdoha.com
30
Once bitten, twice shy
One way to keep inflation at bay is for the
government to build cheaper houses and
provide land to companies free of cost so
they can develop housing stocks to accom-
modate labourers, real estate market and
financial wizard, Ahmed Al Oruqi, told the
local media recently. As hundreds of thou-
sands of foreign workers, a vast majority of
them being semi-skilled and in lower income
categories, descend here to engage in mega
development projects for the 2022 event,
there could be problems housing them, he
cautioned. The tens of billions of dollars
worth of mega infrastructure projects the
government is launching might well mount
inflationary pressures, he warned. Al Oruqi
added, This is what happened in 2006,
in an implicit reference to the crazy price
escalation of 2006-08.
Spiralling rents did play havoc in 2006-
08, agreed celebrated real estate market
expert and investor, Khalifa Al Muslemani.
He said in remarks to a local Arabic daily
late in August that real estate prices were
currently soaring like nobodys business.
There have been massive land transactions
in different parts of the country in recent
months. That is a clear indication of a
booming market. The trend will continue,
Al Muslemani insisted.
Entertainment City, Energy City and parts of
Doha have witnessed most of these deals.
The buyers are individuals and businesses,
and while some might be speculators look-
ing for quick profits over the short-term,
a majority seem to be actual users - those
either looking for stable rental income or
to set up their own businesses in built-
up premises.
Taking stock
Much to the glee of the building industry, the
Ministry of Business and Economy released
figures for April 2013 that suggested the
prices of raw materials were under control.
The rates of aggregates, bitumen, washed
as well as fine sand, limestone, steel bars
used in cement concrete, and high quality
stones, among other things, were stable.
The Ministry had earlier set up a committee
to closely monitor the prices and supply and
demand of the primary, or basic, raw mate-
rials used in construction, including road
development and repair.
According to the Ministrys price list, a
truck load of washed sand cost QR 890,
aggregates QR 77 a ton on average, and a
truck load of fine sand, QR 500, to cite a
few examples. The prices of cement, steel
bars and bitumen were also stable, the
Ministry said.
Construction industry insiders say that
having learnt bitter lessons during the
pre-2006 construction boom when sudden
spurts in the demand for raw materials led
to occasional shortages and price hikes, the
authorities have turned cautious. They are
making sure the hectic construction activity
that will precede the 2022 event does not
create such situations.
According to insiders, the costs of many
development projects were raised, some
considerably, in those days of construc-
tion boom due to flash rate hikes fuelled
by occasional shortages. The Ministry
of Business and Economy, formerly the
Ministry of Business and Trade, thus, set up
a committee to actively track raw material
prices, as well as the situation with regard
to their supply and demand. It releases
monthly reports listing the prices of the
various basic raw materials.
The governments role, according to industry
insiders, is not restricted to tracking prices
alone but also making sure that supplies are
stable over the long-term. A company has
been formed that procures raw materials
such as aggregates, washed sand and bitu-
men, among others, in abundant quantities
to ensure supply security. As for steel and
cement, the companies producing them in
massive quantities locally are controlled by
the state itself.
Aggregates which find widespread use in
road construction are mostly imported from
the neighbouring UAE, Fujairah and Ras
Al Khaimah mainly while Saudi Arabia is a
major supplier of bitumen, which is widely
used in road construction and water-proof-
ing of a buildings foundation and roofing.
Boom time all around
Saudi Arabia is also witnessing a construc-
tion boom, driven mainly by the govern-
ments plans to build mass housing for
weaker sections of its population. Basic raw
materials are needed in large quantities
locally. The situation today is such that the
country that occasionally also exported
cement and steel to neighbouring countries
in the recent past, is now importing large
quantities of cement to meet galloping
demand. There was a problem recently
when cement producers in the UAE raised
their prices and led the kingdom to look for
imports elsewhere.
As for bitumen, industry insiders say so far
there are no problems accessing different
grades of the material from the kingdom
except that the government there has
imposed a surcharge of 20 to 25 percent on
its export. That has raised bitumen prices,
but overall the pricing of this and other
raw materials remains stable and under
control, another insider told bq.
When reminded that the entire GCC region
was witnessing a construction boom so raw
materials were bound to be in increasing
demand regionally and that could impact
their pricing and supplies, the insider said
barring Qatar and Saudi Arabia, and the
UAE to a certain extent, other GCC states
were not seeing so much building activity.
Construction activity is picking up pace in
Dubai, but we cant describe it as a boom
yet, maintained the insider.
Infationary pressures mounting?
Back home, in Qatar, several mega devel-
opment projects such as tunnelling of the
multi-billion dollar metro rail project, for
instance, have been awarded but execution
is yet to begin. I think it should take about
six months for these big projects to begin
to be executed, said yet another indus-
try insider.
There are others in the building industry
who say they expect more projects to
be awarded in preparation for the FIFA
2022 event in 2014. It is then (2014) that
inflationary pressures should begin mount-
ing. Additionally, work on the projects that
have been awarded in 2013 would likely
start by early next year.
Major projects are likely to be awarded to
major foreign companies but much of the
sub-contracting work will come to local
companies and that will bring over more
foreign workers.
This will build pressure on resources,
including housing, pushing inflation up,
said yet another industry source.
Demolitions or no demolitions, rents of
affordable housing would go up due to
massive shortages, he argued. And since
rents are a contributory factor, inflation
would go up, he said.
The situation today is such
that the country (Saudi
Arabia) that occasionally
also exported cement
and steel to neighbouring
countries in the recent
past, is now importing large
quantities of cement to
meet (its) galloping demand
2013
6.30
6.40
6.50
6.60
6.70
6.80
6.90
2014
Contribution of construction sector to Real GDP
2013-2014 (in percentage)
bq | COVER STORY | CONSTRUCTION COSTS
www.bqdoha.com
31
According to construction industry insiders,
right now the situation is that the supply of
raw materials exceeds demand. The situa-
tion hasnt arrived so far where the demand
has begun creeping up, said a senior offi-
cial from a large construction company.
He said the same applied to the demand for
finishing materials, as opposed to basic
raw materials. The demand is static for
timber, aluminium, plumbing materials as
well as electrical fittings and paints.
Building projects are also being launched in
succession, complementing the mega devel-
opment projects. They are primarily to take
care of the housing needs as the countrys
population soars with fresh and large batch-
es of foreign workers arriving to engage in
these projects. Exact estimates are hard to
have but last year some 10,000 new housing
units came on the market, a large chunk of
which consisted of higher and upper-middle
income properties, as opposed to some
18,000 the previous year.
Real estate market sources say they expect
more housing stocks to be added this year
and the next since the population has been
going up faster than expected, pushing
up demand.
Then, there are buildings and complexes
that will provide increasing commercial
space as businesses grow due to the fast-ex-
panding economy and the population.
Among the major commercial projects that
are already underway is Furjan, that would
see a number of large community commer-
cial centres coming up in interior parts of
Raw Material prices 2011-2013
3000
3500
2500
500
2011 (sept)
2012 (July)
2013 (July)
1000
1500
2000
0
BITUMEN 60/70
2368
2545
2363
250
250
250
270
270
270
64
75
78
3190
3190
2990
3040
3040
2840
22
22
22
Cement (OPC Bulk)C ement (SRC Bulk) Gabbro (Aver.)
Reinforcement
steel (8mm)
Reinforcement
steel (40 mm)
Washed Sand
R
a
t
e

i
n

Q
R
Source: July 2013 on ashghal.gov.qa
Last year some 10,000
new housing units came
on the market, a large
chunk of which consisted
of higher and upper-middle
income properties, as
opposed to some 18,000
the previous year
Photography: Bosco Menezes
bq | COVER STORY | CONSTRUCTION COSTS
www.bqdoha.com
32
the country. The idea is to check the influx
of people living outside of Doha into the
capital city and provide them their basic
daily needs at their doorstep.
Meanwhile, surveys conducted by the
Ministry of Development Planning and
Statistics and the Ministry of Business and
Economy have suggested the demand for
primary raw materials may surge consid-
erably as major projects are executed over
the next 5 years or so. These studies assess
yearly rise in the demand for the materials
until 2017-18 and even beyond.
For instance, between 2013 and 2017, the
demand for cement is estimated at 57
million tons; that for washed sand, 101
million tons; 364 million tons of aggregates;
514 million tons of limestone; 10 million tons
of bitumen; 36 million tons of ready-mix
concrete; 166 million tons of soil removal
and disposal, 46 million tons of asphalt and
9.2 million tons of pre-cast concrete.
Industry insiders say that due to the
governments control over the supplies of
these materials and pricing they are confi-
dent that there wont be sudden shortages
that will trigger price increases. Therefore,
fears in some circles that raw material
prices could go haywire as mega projects
are executed seem to be largely misplaced,
said another industry insider.
But there are others who argue that the
actual demand for raw materials would
likely begin soaring from next year when
work on projects actually starts. Supplies
could then go haywire as the demand would
be massive over the coming years. That
could lead to shortages and increase in raw
material prices. This could have a chain
effect and mount inflationary pressure,
said one of the insiders who insisted he saw
higher inflation as an imperative fallout of
such massive spending on mega projects
over a period of six to seven years.
*With inputs from Shereen DSouza
There are others who
argue the actual demand
for raw materials would
likely begin soaring from
next year when work on
projects actually starts.
Supplies could then go
haywire as the demand
would be massive over
the coming years
Construction Sector Contribution to Real GDP
2006-2011 (in percentage)
14
2006 2007 2008 2009 2010 2011
12
10
8
6
4
2
0
Cartoon: Nikhil Pai
Photography: Bosco Menezes
bq | INFRASTRUCTURE | PROFILE
www.bqdoha.com
33
Construction is a lumpy industry, but Drake & Scull
Qatar is looking at several flush years of business
By Rabin Gupta, Doha
Qatar
Tapping
Infrastructure
Drake and Scull Int.- Heart of Dohaland
DSIs Q2 2013 revenues
nearly doubled surging to
AED 1.34 bn compared
to AED 717.3 mn
achieved in Q2 2012
With so many infrastructure projects underway in Qatar and more to follow suit in the build-
up to the 2022 FIFA World Cup, the country has become a happy hunting ground for several
international companies seeking a piece of the pie.
One of them, Drake & Scull International (DSI), is involved in the integrated design, engi-
neering and construction disciplines of general contracting, mechanical, electrical and
plumbing (MEP), water and power, rail and oil and gas. Drake & Scull Qatar (DSQ) area gener-
al manager Karem Akawi says, DSQ has been responsible for numerous high-profile MEP,
construction and engineering projects in Qatar, where we have been optimally leveraging
our expertise and ability to adapt to the complexities and dynamics of the Qatar market.
DSQ has been making inroads into an essentially competitive market. With hundreds of
millions of dollars involved in almost any single project, it is little wonder that all roads lead
to Qatar. New projects are being announced on practically a daily basis and the 2022 FIFA
World Cup has given the already thriving infrastructure sector that extra fillip.
Looking forward to the second half of the present financial year, Akawi says, Doha in
particular will continue to see major infrastructure and rail projects emerge this year and
we are well equipped to compete in major tenders, particularly in the MEP, rail and utili-
ties sectors.
DSQ was earlier this year, awarded a QR 304 mn contract for the design, supply, installation
and commissioning of all MEP works of a mixed-use real estate development project and a
QR 180 mn MEP contract for a residential project. These major project wins have definitely
Karem Akawi, area general manager
Drake & Scull Qatar
bq | Infrastructure l DRAKE & SCULL
www.bqdoha.com
34
created the momentum for the second half
of the year and beyond as we benefit from
market drivers such as the upcoming World
Cup and aggressive national development
initiatives, he said.
Infrastructure hotbed
Acknowledging that Qatar is where it is
all happening in the region, Akawi states,
Qatar is currently a regional hotbed for
construction and related services as it
prepares to host the FIFA World Cup in 2022
and strengthen its infrastructure to meet
the goals of its National Vision 2030 devel-
opment plan.
Drake & Scull sees the involvement of the
Qatari government in projects as an advan-
tage. The Qatari government is keen on
partnering with contractors who have solid
experience and expertise. Qatar has virtu-
ally emerged as one of the most lucrative
markets for specialist firms worldwide and
this level of attention has given the govern-
ment greater leverage to choose the most
competent and qualified candidates for the
numerous infrastructure projects that have
been announced.
DSQ has recently been awarded several
high-profile projects in Qatar and mobili-
sation on-site for most of the projects has
already commenced. This means that
we currently have approximately 1,800
workers on the ground, from our different
departments, given the diverse nature of
projects we are working on. The company
hopes now to land several more projects in
its kitty in what is an extremely competitive
environment.
GCC presence
DSI has a long-standing presence in the
region, having set up its first office in Abu
Dhabi in 1966. It also has operations in
Dubai, Oman and Saudi Arabia. In H1 2013,
DSI registered a net profit of AED 114.9 mn
and revenues of AED 2.567 bn. The figures
represent increases of 53.9 percent and 71.8
percent, respectively. Q2 2013 net profit
increased by 63.2 percent, at AED 52.2
mn compared to AED 32 mn recorded in
Q2 2012. Q2 2013 revenues nearly doubled
surging to AED 1.34 bn compared to AED
717.3 mn achieved in Q2 2012.
On announcing results, DSI CEO Khaldoun
Tabari said, We are well on track in achiev-
ing our growth objectives for the year. Saudi
Arabia and the UAE continue to be the key
drivers to our top line growth. Our opera-
tional cash flow has substantially improved
compared to H1 2012 as we remain focused
and determined on improving collections
and enhancing our cash conversion cycle to
improve our working capital and deliver on
our backlog.
Major Qatar spending
Akawi says, Qatars budget could top QR
210 bn this year to support infrastructural
expansions. In July of this year alone, real
estate transactions more than tripled to
QR 5.5 bn over the same month last year.
Just recently, 30 development wells were
declared ready for the QR 37.5 bn Barzan
Gas Project. These are indicative of how
phenomenal construction market oppor-
tunities are sprouting, courtesy of multiple
sectors.
Existing and potential customers are
drawn to DSI Qatars financial security he
affirms. As they say, the numbers say it
all. We also have the advantage of having
extensive exposure and experience to the
local markets as well as a well-structured
organisation. These are especially appealing
points for the Qatari government, which
continues to come to us for a number of its
major development projects.
DSQ doesnt always fly solo. The company
undertakes projects solely and also consid-
ers strategic joint ventures with internation-
al partners that could add competitiveness
to the services required by the client.
The company undertakes
projects solely and also
considers strategic joint
ventures with international
partners that could
add competitiveness
to the services
required by the client
Drake and Scull site
bq | INFRASTRUCTURE | IN CONTEXT
www.bqdoha.com
35
Dammam hosts construction machinery show
Dammam, the industrial hub of KSA, will
host the 2014 edition of the largest heavy
equipment exhibition across the GCC region
when the Construction Machinery Show
opens its doors to traders and the public
from 16 to 20 February, 2014. The show will
be dedicated to the construction machinery
sector and will provide an invaluable
platform for customers in the region
bringing together manufacturers,
distributors and buyers. The show will run
in conjunction with Buildex, the 16th Saudi
International Building & Construction
Exhibition. Both events will attract
worldwide industry experts, investors and
buyers to the largest trade show in the
Eastern Province.
The total value of on-going projects in the
GCC region currently stands at $2,620
billion, with Saudi Arabia accounting for
$875 billion. The Kingdoms strong
construction market is being driven by
government spending and high oil prices,
according to a recent Global Investment
House report. For 2013, the Kingdom
budgeted $219 billion for spending, up by
18.8%, year-on-year, from 2012. Out of this,
almost $76 billion has been set aside for
capital expenditure on investment projects,
the report added.
Orion acquires prime property
Orion Holdings, a private-owned residential
and commercial property group based in
Dubai, announced the acquisition of
property worth AED57.7 million in the Axis
Residences community at Dubai Silicon
Oasis, from Gulf General Investment
Company (GGICO), a public joint-stock
company listed with the Dubai Financial
Market. Through the acquisition, Orion will
own a total of 102 units in Axis Residence 6,
which constitutes almost the entire built-up
area of the building.
Located in the heart of the increasingly
popular mixed-use community, Dubai
Silicon Oasis, the Axis Residences offers
stylish one-bedroom apartments and a
secure living environment to residents. Axis
Residences features abundant leisure and
lifestyle facilities including large open-to-
sky swimming pools, state-of-the-art fitness
centres, and an expansive landscaped
podium, among others. Located within
Dubai Silicon Oasis, Axis Residences affords
easy access to Emirates Road and Al
Khail Road.
Sun control from recycled bottles
Hunter Douglas, a global leader in the
construction materials business, will soon
introduce in the Middle East region a new in
the field of light and energy control
GreenScreen, the first sun control system
made from recycled bottles. Part of the new
collections appeal lies in the exceptionally
sustainable materials used for its
development. For instance, GreenScreen
Eco consists of 100 percent recyclable
polyester fibres (the fabric can be melted
down without the need for waste
separation and used as raw material for
other products) while the GreenScreen
Revive materials was produced from
recycled plastic bottles. Hunter Douglas is
the only manufacturer in the field using
these sustainable materials for project-
based light and energy control.
AED 17mn investment in Marfa Port
Abu Dhabi Ports Company (ADPC) has
announced an AED 17 mn investment for
Marfa Ports first-phase development of
infrastructure and maritime leisure
facilities for the local community. The port
is at the north end of Marfa city with direct
water access to the Gulf, in the Al Gharbia
region, 125 km west of Abu Dhabi. The port
has been operational for many years, but
with little proper infrastructure to speak of.
The investment is the first Public Realm
project, funded by the department of
transport, to be implemented as part of the
Al Gharbia master plan. An agreement was
signed for the development work between
Majestic Marine Engineering managing
director Marios Economides and ADPC
acting CEO Mohamed Al Shamisi.
bq | INFRASTRUCTURE | IN CONTEXT
www.bqdoha.com
36
Saudi Build 2013
Saudi Build 2013, the 25th International
Construction Technology and Building
Materials Exhibition will kick-off on 4
November, 2013 at the Riyadh International
Convention and Exhibition Center. Now on
its 25th year, Saudi Build will reflect how,
with around SAR 375 billion worth of
projects in the pipeline, KSA continues to
be a driving force for construction in the
MENA region. It will offer trade visitors
exciting displays of the latest and top-
notch building materials and equipment,
architectural finishing products, stone,
marble and granite products, construction
tools and technology, engineering services,
infrastructure materials, and security and
safety systems, among others.
The show will serve as the main platform
for building new business opportunities in
Saudi Arabias construction sector through
displays and presentations of the latest in
technology, machinery and equipment.
Last years edition welcomed 812 exhibitors
from 34 countries and 22,649 visitors
covering an exhibiting space of sqm
26,000; with exhibitor confirmations
already in full swing, the 2013 edition is on
track to achieve record figures. For more
information visit www.saudibuild-expo.com.
48-storey residential
tower in Dubai
Arady Developments LLC, a joint venture
between Deyaar Development PJSC
(Deyaar) and Dubai Properties Group,
recently announced the launch of its
48-storey residential tower, a part of the
prestigious Central Park project at the
Dubai International Financial Centre (DIFC).
Located in a prime residential area in close
proximity to Dubai Mall, Emirates Towers,
Burj Khalifa and the Financial Centre metro
station, the Central Park residences are
insightfully conceptualised to reflect the
upscale lifestyle and enterprising spirit of
its residents.
Spread across nearly 575,000 square feet,
the tower comprises 426 apartments
including plush studios, one and two
bedroom apartments, as well as two and
three bedroom duplex and triplex
penthouses. Nearly 80 percent complete,
the tower features the finest in next-
generation, premium high-rise living,
including ultra-modern facilities such as a
podium-level landscaped courtyard,
swimming pools, as well as exclusive
shopping and dining outlets.
Cheaper office space need of the hour in Doha
A likely upsurge in small and medium-sized
businesses might push up the demand for
cheaper office space in Doha, market
researches and operators have suggested.
Office rents have been stable in the prime
central business district (CBD) of West Bay
until June 2013, averaging QR 230 per sqm
a month. But, more than half of the total
space under occupancy here is with
government-related entities. The demand is
higher for medium and low-end office space
whose rents usually range up to QR 145 per
sqm on average.
Rents of affordable office space have also
been stable except that they showed a
slight five percent increase in the first three
months of 2013 over the same period the
year before. Rents were stable in the
second quarter (April to June), and might
now show a slight upswing due to rising
occupancy levels. This is particularly true of
office space on the busy C and D ring roads,
where occupancy rates have lately shown
an increase. Departing from the earlier
practice, owners of properties in these
areas are now offering smaller units to
prospective office tenants to cater to rising
demand. It is now possible to rent even 50
to 100 sqm of office space in the above
properties.
According to Tamween, a development
management consultancy and subsidiary of
Barwa, the real estate giant, an increasing
focus on SMEs by the state and greater
involvement by the private sector in its key
economic diversification drive might
further push up demand for affordable
office space. As for the posh CBD area,
which remains dominated by government-
related tenants, more supply is expected to
come on the market. The demand, though,
might not match higher supply, so
occupancy might take time. And this could
hammer the rentals a bit lower Tamween
said in a recent report.
What might further accelerate the demand
for medium and lower-end office space is
an expected government directive early
next year asking certain categories of
commercial users of residential villas to
vacate. The users include, in the main,
engineering, audit and legal consultancies
as well as offices of small-time advertising
and printing firms. Their deadline to vacate
villa premises is being renewed annually for
the past few years, so 2014 might
eventually see them eased out and hunting
for cheaper alternatives in commercial
areas of the city. Most of these users have
made it clear they would not be able to
afford plush and expensive rented offices in
the towers of the CBD, if forced out of
residential villas.
bq | INFRASTRUCTURE | IN CONTEXT
www.bqdoha.com
37
DSI bags MEP deal for
Louvre
Drake & Scull International PJSC (DSI) has
recently signed an AED 415 million contract
to execute the complete MEP works for the
iconic Louvre Museum project in Abu
Dhabi. The contract was awarded by
Asolouvrejv, the Arabtec Construction LLC
(Arabtec)-led joint venture with
Constructora San Jose SA and Oger Abu
Dhabi LLC that has been appointed by
master developer Abu Dhabi Tourism
Development and Investment Company
(TDIC) to be the main contractor of
the project.
The scope of work for this contract will be
executed in coordination with Habtoor
Leighton Specon and includes all
incidentals MEP Works on the project
scheduled to be completed in the fourth
quarter of 2015. Louvre Abu Dhabi is
located in the Saadiyat Cultural District and
is scheduled to be inaugurated in 2015.
With a built up area of 64,000 square
metres, Louvre Abu Dhabi evokes the
image of a city floating on the sea.
45% rise in Oman real estate transactions
There were 120,081 real estate transactions
valued at RO 1.716 mn in Oman in 2012, a 45
percent rise over the preceding year,
according to the Ministry of Housings 2012
statistics yearbook. There were 100,198
land plots registered for the first time
during the year. The number of deeds
issued was 207,204 in various governorates
of Oman whereas there were 3,376 deeds
for GCC nationals. The data released by the
ministry showed that the total number of
various planned land uses in 2012 stood at
58,609 land plots in all governorates and
distributed plots stood at 38,768, according
to the indicators released by the sectors of
urban planning, land distribution, real
estate register and social housing.
In the area of social housing programme
serving families living on social security or
low incomes, 340 housing units were
approved in Oman. The number of Omani
families that benefited from housing
assistance stood at 4,812 at a total cost of
RO 105 mn. In the field of housing loans,
1,388 families benefited from the
programme, with a total value of RO 26.8
mn, a 363 percent rise in
comparison to 2011.
Cityscape Global 2013
The renewed investor confidence in Dubais
real estate market is reflected in the
emirates largest property showcase,
Cityscape Global, as the three-day event
prepares to host more than 200 exhibitors
in 2013 for the first time in four years.
Cityscape Global, the Middle Easts largest
and most influential international real
estate event, is expected to grow by 50 per
cent for the second year running. According
to the Dubai Land Department, more than
AED50 billion was invested into Dubai real
estate in 2012. Several Dubai-based
developers will be exhibiting for the first
time at Cityscape Global, further
underlining the emirates property market
revival, and many more major developers
will be returning to the show after a hiatus
following the global recession in 2008.
MAG Group, Omniyat, Tanmiyat, Jumeirah
Golf Estates and Union Properties return
for the first time in several years with new
developments and project updates, while
Diamond Developers, SKAI, and Sobha
Group take their place among a group of
newcomers to the showpiece event, which
takes place from 8-10 October at the Dubai
World Trade Centre. The events organisers,
Informa Exhibitions, also expect several
exciting new project launches from local
powerhouses including Emaar, Nakheel,
Dubai Properties Group, Meraas, Dubai
World Central, and Meydan, as the key
developers look to drum up demand from
investors at their largest show stands yet. A
large representation from Qatar will be also
take part as the thriving Gulf state
continues on its ambitious development
plan as the host of the 2022 FIFA World Cup
Msheireb Properties, Mall of Qatar, Barwa
and United Development Company (UDC),
the company behind the Pearl Qatar, are
among the headline developers on show.
Supported by the Dubai Land Department,
Cityscape Global is the annual meeting
point for key real estate investors,
developers, investment promotion
authorities, architects, designers and other
real estate professionals to drive growth in
real estate investment and development
across emerging markets globally. The
property event is co-located with three
dedicated conference programmes the
Global Real Estate Summit, Future Cities,
and the MENA Mortgage and Affordable
Housing Congress, bringing together a
combined 750 senior real estate
professionals who will explore opportunities
and find solutions to key challenges
affecting the industry today. For more
information visit www.cityscapeglobal.com.
Upsurge expected in Kuwait realty
Real estate brokers in Kuwait expect
resurgent market conditions following the
current summer slump in sales, caused not
by vacationing investors but by prohibitive
prices of properties which could rise even
further. Real estate agent Ayoub Al Taher
said that by the end of September, sales of
property would have picked up but prices
would remain high as long as demand
outstrips supply. He pointed out that
numerous home seekers have given up
lately on home purchases as the price per
sq. metre close to the heart of Kuwait City
spiked to over KD 1,000, a sum out of reach
for most people.
However, the picture has been a little
brighter for investment properties such as
apartment buildings which saw brisk
business this summer due to big demand,
especially in the suburbs of Abu Hulaifa and
Mahbola, where many buildings have
sprung up ready to be sold to investors. The
average rent for a two-bedroom apartment
in crowded areas like Salmiya and Hawalli
where many expats live is about KD 300,
said real estate agent Ali Dashti.
bq | SERVICES | SMART GOVERNMENT
www.bqdoha.com
38
The Smart Government initiative is the UAEs way of responding to innovation and
not just creating it
By E. Shahid, Dubai
UAE
From customs department to hospitals, electricity and water authority to courts and civil
defence, there has been one flavour of the season for the UAEs public entities Smart
Government. The announcement to launch an ambitious and integrated m-Government
(mobile government) service promises to propel it to a league of select nations that offer
government services through mobile devices, anywhere and round-the-clock. Dubbed to
be the Middle Easts first such service, the initiative intends to leverage the high mobile
penetration in the country estimated at almost 14 million amounting to just below two
devices per individual. The new service is set to be fully accessible across all government
departments in the country within two years.
Like everything else in Dubai, H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice
President and Prime Minister of the UAE and Ruler of Dubai, chose to put his weight behind
the project. He called the initiative a transformation from e-Government to m-Government,
which will serve as a model for countries across the Middle East, particularly the GCC. The
Middle East has nearly 1 billion mobile phone subscribers according to recent estimates with
the UAE leading in mobile penetration with rates exceeding 230 percent. On average, the
GCC has a mobile phone penetration rate of 180 percent, higher than that of Russia (160
percent), US (108 percent) and China (78 percent).
For Sheikh Mohammed the transformation has relevance for the region. The launch of this
initiative is not simply an achievement of the UAE, rather an open invitation to strengthen
cooperation among all countries in the GCC and the region to draw on the strong mobile
connectivity to provide efficient government services to the people, he said. There was
Three major tracks are
guiding this initiative
activating all e-Services
via smart phone
applications; creating new
m-Government services;
and inviting government
entities to devise unified
mobile strategies for
transformation into
Smart Government
bq | SERVICES | SMART GOVERNMENT
www.bqdoha.com
39
also a clear-cut direction given for the
initiative. The objective now must be to
relocate customer service centers into
every customer device, enabling them to
obtain their desired services through their
mobile devices, anywhere and at any time.
A successful government reaches out to the
people rather than wait for them to come to
it, he said.
Three major tracks are guiding this initiative
activating all e-Services via smart phone
applications; creating new m-Government
services; and inviting government entities
to devise unified mobile strategies for trans-
formation into Smart Government. This is
set to move the already tech-savvy Dubai
e-Government (DeG) a notch higher. DeG
currently has a package of smart phone
apps and mobile services including m-Pay
for mobile payment of government services
and fees; m-Dubai for most used govern-
ment services, e-Complain tracking, govern-
ment news and information; and SMS Dubai
for SMS based services between customers
and the Dubai government.
Response to stimulus
Most interestingly, the initiative is not based
on the archetypal Dubai model of build and
they will come. In fact it is the other way
around an acknowledgment that technol-
ogy has arrived, can be used to good effect
and governments must take the lead in
benefiting from it. It is also based on facts on
the ground. A recent Google study said that
mobile usage has significantly increased in
popularity throughout the Middle East, with
the UAE posting the highest penetration in
the region at 74 percent. The study showed
that consumers are becoming increasingly
reliant upon their mobile devices, with 56
percent of those surveyed stating that
they never leave home without their device
and access the Internet with the device
every day.
A certain level of backward integration
has also gone into the decision. To begin
with, the countrys Telecommunications
Regulatory Authority (TRA), in coordina-
tion with the Prime Ministers Office at the
Ministry of Cabinet Affairs, increased its
efforts to ensure a safe and secure transi-
tion towards the implementation of m-Gov-
ernment services for all UAE government
entities by establishing the Trusted Security
Manager (TSM) framework. The new frame-
work is meant to engage all parties involved
in the process both government and
private sector and ensure that all activ-
ity is in line with online safety procedures.
The key stakeholders considered when
drafting the TSM framework include the
Prime Ministers Office, Ministry of Finance,
Ministry of Interior, the TRA, the Identity
Authority, the UAE Central Bank and tele-
com services providers Etisalat and Du and
several banks and private sector companies.
Opportunities created by technology have
given a compelling reason for authorities
to move in this direction. Even in the e-com-
merce domain, for example, it is learnt that
an average of 60 percent mobile users in
the UAE search for products and services
daily. Mobile app usage is now ubiquitous,
with 23 apps downloaded on average per
month per user. In Saudi Arabia, smart
phone penetration is only slightly lower but
consumers there seem to have a stronger
appetite for travel with 52 percent search-
ing for related content.
The potential unleashed by smart phone
phenomenon has been immense and they go
beyond government department to services
sector. According to Amer Al Halabi, region-
al manager of MENA for HotelsCombined,
mobile devices are an essential medium to
engage customers on the move. They have
created a new business opportunity in hotel
booking and its an ideal channel through
which to sell rooms that otherwise would
remain unoccupied. The company has made
smart phone and tablet apps available to
MENA consumers providing hotel price
comparison with an Arabic user interface.
It is obvious that technology has manifested
itself rapidly in various sectors and Smart
Government appears to be byproduct of
this transformation. Interestingly, each
government department has approached
it differently, bringing in its unique input
in the process. The Knowledge and
Human Development Authority (KHDA),
for instance, said it plans to convert 26
electronic services to smart services via
mobile phones during the next academic
year. KHDA customer service director Abdul
Rahman Nasser said that 17 services would
be converted to smart services and the
Authority had identified nine smart servic-
es for workers in the field of education at
Dubais private schools.
Catching up
For its entire novelty factor, it would
be wrong to assume that the Smart
Government drive is running ahead of its
schedule. On the contrary, it appears to be
a delayed start. By 2010, the Middle East
can expect e-Government services going
mobile and providing citizens of the region
with immediate access to a range of servic-
es such as trade and industrial support,
national healthcare, visa and immigration
applications and local government commu-
nity support, Osama Ghoul, managing
partner of Devoteam Middle East, said in a
statement way back in March 2008.
Its quite likely that citizens could use their
mobile phones to pay for traffic and parking
charges without the need for a computer,
saving time and effort for communities and
businesses at large. As e-Government is
improving services for citizens, businesses
and even other government departments,
its important to look at how these servic-
es can and already are evolving towards
mobile use as mobile phone penetration
vastly outstrips computer penetration in the
Middle East. Its rare to see someone with-
out a mobile phone but less common to see
someone carrying a laptop, Ghoul predict-
ed about a phenomenon which is only now
beginning to unfold.
Now that Smart Government is beginning to
develop, it appears that the ground is being
quickly prepared. Soon after H.H. Sheikh
Mohammeds announcement, the Roads &
Transport Authority (RTA) said its roadmap
for migrating from e-Government to m-Gov-
ernment is set to gather pace to further
broaden the service outreach in the first
half of 2015. For RTA, this meant beefing up
the number of services offered via smart
phones as well as other handheld gadgets
(iPhone, Android, Blackberry and Windows
8) from the existing 17 services to 72 servic-
es by 2014. The RTA currently provides 17
services compatible with the most common
mobile operating systems.
Services provided by the RTA through smart
phones are set to pick up substantially in
the near future with as many as 55 services
in the making; including nine services this
year and 46 services as early as next year,
to bring the total number of mobile services
to 72. According to the RTA, it will undertake
a study of all its services 156 of its 208
services are currently available online to
explore the possibility of providing them via
mobile phones. It will also review the best
global practices in order to develop crea-
tive services that can be offered via smart
phones, H.E. Mattar Al Tayer, chairman of
the board and executive director of the RTA
said. It is obvious that the UAE in general
and Dubai in particular is determined not to
be left behind in this race to make the best
possible use of technology. Once achieved,
this will truly transform into a Smart
Government.
The RTA will undertake
a study of all its services
156 of its 208 services
are currently available
online to explore the
possibility of providing
them via mobile phones
bq | SERVICES | LIMOUSINES
www.bqdoha.com
40
Ride in style and deliberate on day-to-day business matters while engaging in
the luxury of your very own chauffeur-driven premium vehicle, stretched or
otherwise. A round-up of the best limousine services the Gulf has to offer
By Shereen DSouza, Doha
GCC
Stretch in Style
Fox Limousine, Qatar
One of Qatars more popular limo services, Fox Limousine has been around for over a decade
and is one of the leading names in luxury transportation in Qatar. With over 200 cars in their
fleet, a dedicated operations team is always available to organise integrated transportation
solutions for clientele with a reservation centre thats open 24/7. The limo service features
all the latest premium vehicles in their fleet, equipped with all luxury features. They have
stretch limos, buses, 4WDs and the option of online payments.
Rentals: There are different categories of cars for rentals. Luxury vehicles like A8, BMW 7
Series and Mercedes S Class will cost QR 1750 per day with a chauffeur.
Leasing: Cars are available on lease for a term as requested by the company. Rates are
subject to requirements.
Corporate specials: Depending on the service requests and the volume of limousine rent-
als, they can offer special corporate rates and limousine services that suit specific company
requirements. Credit facility is available. Fox Transport offers a Voucher service, wherein
the company can make bulk payments and obtain vouchers which they can pass on to their
guests or passengers, without any financial hassle. The guest can use these vouchers for
services from the company. Fox also has operator assisted conference calls. The operators
have chaired calls for presidential candidates, sporting events and federal judges.
Location: Fox transport is at four locations in Doha with a presence in Villaggio mall and the
Doha International Airport.
For more information call +974 4462 2777 or visit www.foxtransport.net
bq | SERVICES | LIMOUSINES
www.bqdoha.com
41
Star Limo, Qatar
Fairly new in the limo business, Star Limo
does not lack the flair for supreme service.
With over 100 vehicles in their fleet (and
still counting), they provide all possible
luxury chauffeur driven vehicles from BMWs
to Range Rovers. Theyve been around for
over two years and are one of Dohas better
known limousine service. Star Limo has
recently concluded the United Nations
Climate Change Conference - COP18, provid-
ing more than 450 luxury limousine cars
with chauffeurs for all, including heads
of state. With the increase in demand for
celebrity transport due to events, movies,
concerts and launches, they have also
been awarded Celebrity Transport at
the Pearl Awards 2013 held last month and
the IMAQ Awards 2013 this year.
Rentals: A chauffeured Mercedes E Class
can cost around QR 1300 for a 16-hour day,
while a BMW 7 Series can cost QR 2600 for
the same period. Car rentals vary depending
on the type.
Leasing: All vehicles can be leased for a
minimum period of 18 months.
Corporate specials: If youre an executive
on the travel, Star Limo has just the service
for you with their Business Charter. This
office-on-the-run concept transforms their
custom-made fleet of Mercedes S500 cars
into fully functional offices with wifi, GPS,
bluetooth, video conferencing, desktop, TV/
DVD and printer/scanner/fax/copier. This
convenient setting makes business while
travelling a pleasure.
Location: Star Limo is located on the D-Ring
road, a U-turn from the airport traffic lights.
For more information call +974 4491 3760
or visit ww.gulfstardoha.com
Prestige Cars, Qatar
Founded in 1997 as a subsidy of Alfardan
Automobiles, Prestige has grown to be a
popular and trusted brand in Qatar. With a
huge fleet size, and a history of supplying
as many as 250 luxury cars, they provide
various services including luxury vehicle
rentals, limousine services, leasing and the
VIP luxury bus. Their 24-hour limo services
feature premium vehicles like Rolls-Royce
Phantom, BMW 5 and 7 Series, Range
Rover and Jaguar XF/XJ. All vehicles are
equipped with newspapers, refreshments,
a music menu and of course well-trained
multi-lingual chauffeurs. Mobile services are
available on request.
Rentals: A BMW 5 and 7 Series ranges
from QR 1400-2000 per day. Rolls-Royce
Ghost 2013 can cost around QR 5000 per
day. Rates may differ according to company,
choice of vehicle, fleet requirements and
several other factors.
Leasing: Small and large fleets of premium
cars are available for up to three years of
leasing. While a Jaguar XF/XJ can cost
you approximately QR 9000 per month on
a lease contract of three years, a BMW 3
Series will cost QR 4500.
Corporate specials: Corporate accounts
are a possibility with Prestige. Opening
such an account entitles an organisation
to fixed predefined prices for all types of
transfers, great savings with discounted
prices, month-end billing and online book-
ing options. Prestige offers a VIP Coach
Service, a 22-seater luxury bus with loung-
es, restrooms, a kitchen, LCD displays and
hostess service offering wide variety of
snacks and refreshments - ideal for host-
ing clients, receiving delegates and VIP
sight-seeing tours.
Location: Prestige Cars is located at the
Doha International Airport, the Alfardan
Automobiles Service Centre (Industrial
Area) and most of the five star hotels across
Doha (Four Seasons, Intercontinental,
Sheraton, W Hotel, La Cigale, among others).
For more information call +974 5547 4242
or visit www.prestigecarsco.com
Bahrain Limousine
Bahrain Limousine caters to corporates
and leisure travellers in Bahrain with their
chauffeured limo service from the airport
to your hotel or residence. All vehicles in
their fleet are non-smoking and equipped
with the latest magazines, mineral water
and feedback forms. They also organise
sight-seeing trips in Bahrain. Their fleet
includes Mercedes S Class, BMW 7 Series,
Lexus and GMC Suburban.
Rentals: City transfer rates for special
corporate chauffeured limousines from
Bahrain Airport cost QR 220 within a
radius of 15 Kms, QR 260 within 20 Kms,
QR 330 within 30 Kms and QR 400 for
areas like BIC, Hamad Town and Zallaq (35
Kms radius).
Leasing: They dont lease cars.
Corporate specials: They dont have any
special packages for corporates.
Location: Their offices are located at
Bahrain Airport, Al-Khobar and Saudi
Arabia as well.
For more information call +973 1724 3412
or visit www.bahrainlimousine.com
Photography: Bosco Menezes
bq | SERVICES | LIMOUSINES
www.bqdoha.com
42
Connection Chauffeur,
UAE
Connection Chauffeur was established in
2009 and with a fleet of VIP stretch limos
and luxury cars, their services suit all your
requirements. Besides the Hummer and
Ford Excursion stretch limos, they offer a
wide range of luxury cars like Bentley, Rolls
Royce, BMW 7 Series, Range Rover and
sports cars like Ferrari and Lamborghini.
They specialise in airport transfers and
cover all UAE airports besides offering
services for all kinds of events. Also, if
youre looking to charter a luxury yacht or
even a helicopter, Connection Chauffeur is
just a phone call away.
Rentals: Their stretch limousine rentals
range from QR 2000 QR 4000 for a full
10-hour day. With trained chauffeurs, their
Elite Luxury Limos like Rolls Royce and
Maybach can be hired for as little as QR 750
per hour. A BMW 7 Series and Mercedes S
Class can cost approximately QR 1500 per
day (10 hours) and QR 750 for 3 hours.
Leasing: They dont lease cars.
Corporate specials: They offer a 10%
discount on published rates for corporates.
Location: Connection Chauffeur is located
on Sheikh Zayed Road, Dubai.
For more information call +9714 346 98 93
or visit www.limouae.com
Saudi VIP Limo
Relax and let Riyadh-based Saudi VIP Limos
professional chauffeurs drive you around.
With 30 years of experience and services
available to central, western and eastern
provinces, you can count on them for world-
class service. Saudi VIP Limos feature cars
like Mercedes, BMW, Range Rover, Lexus
and others in their luxury fleet. With family
cars, buses and coaches, luggage vans and
more, they are well equipped for custom-
ised requests as well.
Rentals: The Mercedes E Class will cost you
QR 1050, QR 1325 for BMW 5 Series and
QR 2880 for Mercedes S Class and BMW 7
Series. All rates are per day for 8 continu-
ous hours including fuel within city limits.
100 Kms are free per day.
Leasing: They dont lease cars.
Corporate specials: The BMW 7 Series can
cost approximately QR 2400 for corporates,
and further reduced depending on the
number of days the vehicle is rented for.
The Lexus ES350 can be obtained for QR
1350. Rates are calculated per day.
Location: Saudi VIP Limo head office is
located at Malaz, Riyadh with a branch in
Jeddah as well.
For more information call +966 1 291 5305
or visit www.saudiviplimo.com
Exotic Limo, Dubai
Dubai Exotic Limo started around ten years
ago and is one of Dubais more renowned
limo services. Their fleet is expansive and
the number of cars can be arranged accord-
ing to your requirements. Exotic Limo
makes possible a selection from a wide vari-
ety of premium vehicles such as Hummer,
Lincoln, Cadillac, Dodge, Mercedes, Porsche
Cayenne and BMW 7 Series. The vehicles
are equipped with surround sound, colour
TVs, ice pockets, fully stocked refreshment
bar and the like. They also specialise in the
manufacturing of stretch limos. Given a
customers request, they can stretch just
about anything.
Rentals: Their rentals vary from QR 2000
QR 5000 depending on the type of vehicle.
The rates are calculated on a daily basis for
10 hours.
Leasing: They dont lease vehicles.
Corporate specials: A BMW 7 Series can be
negotiated for QR 1500 per day. Depending
on the requirement, the service charges
(administration fees and gratuity) of 30
percent can be waived off for corporates.
Location: Dubai Exotic Limo is located at Al
Garhoud (next to Chilis).
For more information call +9715 695 7160 /
800 5466 or visit www.dubaiexoticlimo.com
bq | SERVICES | IN CONTEXT
www.bqdoha.com
43
Aspire4Sport attracts top businesses
The Aspire4Sport Congress and Exhibition,
which will take place from 16 to 19
November at Aspire Dome, has confirmed
that a vast range of local and international
businesses are participating. A diverse set
of companies and organizations spanning
geographies and sectors have set their
sights on the event to tap into expanding
sports business sectors including
construction, sports medicine and sports
technology. Among those companies
committed, Grimshaw Architects plan to
exhibit in the exhibitions construction
segment, Aspire Build, while others such as
Hamad Medical Corporation (HMC) plan to
take part in Aspire Med, its sports medicine
segment. To facilitate tailored B2B
exchanges and ensure exhibitors engage
with the right business leads, this years
Aspire4Sport Exhibition will be broken
down into five key sports industry areas:
Aspire Tech, Aspire Build, Aspire Logistics,
Aspire Org and Aspire Med. For more
information visit www.aspire4sport.com.
Doha hotels register
rise in July
Doha Hotels bucked the trend in the Middle
East by posting a 9.5 percent occupancy
rate rise in July, according to new data
provided by STR Global. Doha was the only
city in the Middle East to post positive
occupancy figures as the region saw rates
slump by 13.5 percent. In Doha, occupancy
rates at hotels rose to 48.2 percent, STR
Global said, adding that the only other city
registering growth in the Middle East and
Africa was Nairobi in Kenya.
Qatar Tourism Authority (QTA) had
released figures showing that hotel
occupancy rates rose from an average of
58 percent to 67 percent, despite there
being a 4.5 percent increase in the number
of rooms available. Total revenue in four
and five-star hotels increased by QR 155.9
mn, with a 20 percent increase in revenue
at five-star hotels alone. The total number
of hotels under construction increased to
121 properties in the second quarter of 2013
from 110 at the end of 2012; with a total
20,955 rooms expected to be delivered.
Solar Qatar Summit 2013
Solar Qatar Summit 2013 takes place in
Doha, Qatar on 18 and 19 November 2013,
under the patronage of H.E. Eng. Essa bin
Hilal Al-Kuwari, president of Qatar General
Electricity & Water Corporation Kahramaa
and with support from H.E. Sheikh Abdul
Rahman bin Khalifa Al Thani, minister of
Municipality and Urban Planning, State of
Qatar. Over 200 solar industry stakeholders
dedicated to ensuring Qatars sustainable
future will meet to discuss the deployment
of solar energy in the region and see
presentations and case studies from both
regional and international thought-leaders.
From policy-making, strategic planning,
research and development to the
showcasing of major solar energy projects
and innovative
technologies Solar Qatar Summit 2013 will
cover the most up-to-date information
within this developing market.
Solar Qatar Summit 2013 is a must-attend
for anyone seeking an exclusive insight into
the solar energy industry in Qatar, and the
challenges and opportunities in achieving
the regions ambitious goals. The summit
takes place at the Grand Hyatt Doha on 18
and 19 November. For more information
visit www.solarqatarsummit.com.
bq | SERVICES l IN CONTEXT
www.bqdoha.com
44
Depa acquires Loher Raumexklusiv
Aircraft movements rise in Dubai
The Dubai Civil Aviation Authority (DCAA)
has projected 375,000 aircraft movements
for Dubai International Airport (DIA) and
Dubai World Central (DWC) in 2013, rising to
665,000 in 2020. In 2010, aircraft
movement stood at 307,283, 325,000 in
2011 and 344,656 in 2012. Passenger
operations at DWC, Dubais second
international airport, are due to commence
on October 27 this year. DCAA director-
general Mohammed Ahli said a growth rate
of 8.6 percent in aircraft movements
clearly suggests that DIA and DWC are on a
curve of exponential growth that would see
a massive surge in aircraft movements.
In the first half of 2013, aircraft movements
increased by 7.4 percent compared to the
corresponding period last year. DIA is
projected to handle 65 million passengers
this year. The DCAA aims to see passenger
aircraft movements reaching 355,000 this
year and 385,000 and 416,650,
respectively in 2014 and 2015.
OSN acquires Pehla
OSN, a leading pay-TV network in the
Middle East and North Africa, has
significantly expanded its entertainment
bouquet with the strategic acquisition of
Pehla Media & Entertainment, the regions
largest provider of South Asian pay
television content. The acquisition brings
nearly 40 popular South Asian channels in
Hindi, Urdu, Bengali, Tamil and Malayalam
languages to OSNs existing comprehensive
portfolio of channels.
Bringing the best in Bollywood and
premium cricket, with exclusive telecast
rights of the ICC Cricket World Cup, OSN
Pehla will underscore the networks position
as the ultimate destination for premium
content. Showcasing nearly 140 TV
channels with the widest spectrum of
Arabic, Western, South Asian and Filipino
television entertainment, OSN now has
something for everyone. Pehla will now be
known as OSN Pehla, functioning as an
integral unit of OSN dedicated to South
Asian content delivery.
Qatari Fashion comes to London
Fashion Exchange forms part of Qatar UK
2013 Year of Culture which celebrates the
long-standing relationship between the two
countries and aims to forge new and
support existing partnerships in the arts,
education, sport and science, while
promoting an awareness and appreciation
of each countrys culture, achievements
and heritage. The Year of Culture is a
programme of cultural exchanges and
events in Qatar and the UK coordinated by
the British Council and Qatar Museums
Authority with the support of their
respective Ministries of Culture and Foreign
Affairs and a number of leading British and
Qatari cultural and educational
organisations. His Royal Highness the
Prince of Wales and His Highness Sheikh
Tamim bin Hamad Al Thani, Emir of Qatar,
are Patrons of Qatar UK 2013.
In September, a fashion show featured work
by internationally renowned UK designer
Philip Treacy and emerging female
entrepreneurs from Qatars Roudha Centre,
Elham Al Ansari, Fathiya Al Jaber and
Hessa Al Mannai. The show paired abayas
and jalabiyas by the Qatari designers with
headdresses by Treacy with the aim of
challenging perceptions of the abaya and
the role of women in Gulf societies.
In December, Fashion Exchange continues
with six upcoming British designers
selected by British Fashion Council,
travelling to Qatar for a series of shows in
Dohas elegant Salam Gate Mall. Fashion
Exchange will culminate in a private show
with established designers like Alice
Temperley and Treacy at IM Peis
spectacular Museum of Islamic Art,
featuring Temperleys iconic gowns and
Spring Summer 2014 collection, and
handbags and hats by Treacy.
bq | SERVICES l IN CONTEXT
www.bqdoha.com
45
UAE arms makers enter into merger
Tawazun Holding, the UAE-based strategic
investment company focused on specialised
manufacturing and industry, has
announced the merger of Caracal
International and Tawazun Advanced
Defense Systems (TADS). The merger sees
the consolidation of the UAEs two leading
military and sporting weapons
manufacturers with the new company
operating under the name of Caracal
International. Caracal is the regions leading
manufacturer of pistols and rifles for the
civilian, military, law enforcement and
sporting markets, while TADS was the
Tawazun groups manufacturer of advanced
defence systems catering to military, law
enforcement and sporting customers.
The new Caracal International will now
design, develop, manufacture and sell
firearms, sniper rifles and other light
weapons under the established Caracal
brand name at its manufacturing base in
Abu Dhabi. Caracal International, which is
based at the Tawazun Industrial Park in Abu
Dhabi, has established itself as a well-
regarded brand in its sector globally and is
able to cater to the diverse needs and
requirements of its growing international
roster of clients. Former TADS general
manager Sultan Aouda has been appointed
as CEO of the newly merged operation.
Qatar leads in healthcare spending
Healthcare expenditure in Qatar represents
1.9 percent of the GDP and the country
currently has the highest per capita
healthcare expenditure in the GCC at USD
1,715. Qatars public healthcare budget
witnessed a rapid increase during 2012. The
approved budget for financial year
2012-2013 was 47 percent higher than that
of the previous year. Average healthcare
spending in the GCC is three percent of the
GDP per annum.
Qatars population has more than doubled
in the past decade, from approximately
700,000 in 2004 to almost 1.84 million in
2012. The rapid increase in the population
over the last few years is attributed to the
strong performance of the economy, which
has resulted in a large number of projects
coming online, thereby leading to the influx
of professionals, service workers and
contracting sector staff, said a report by
Kuwait-based Islamic bank Kuwait
Finance House.
Sabre strengthens
presence in KSA
Bahrain-headquartered travel technology
company Sabre Travel Network Middle East
(Sabre), has renewed its long term
agreement with Mosaid Travel and Tourism,
one of the fastest growing travel agencies
in the Kingdom of Saudi Arabia and the
region. The exclusive agreement will
enable Mosaid Travel and Tourism to
continue using Sabres wide ranging Sabre
Red portfolio, which provides agents with
the latest technology capabilities to shop,
book and manage travel. KSA is a key
market for Sabre, and the company has
made significant investments to grow its
presence in this region. Sabre has 23
offices in 13 countries in the Middle East
and the Levant in addition to 15 training
centers across the region.
Depa acquires Loher Raumexklusiv
Dubai-based interiors contracting firm Depa
has acquired the assets of German
company Loher Raumexklusivs luxury
interiors business through its wholly-owned
German subsidiary, Vedder, for an
undisclosed sum. Depa CEO Mohannad
Sweid said, This acquisition is a highly
complementary fit with Vedder and
combining both facilities will make us one
of the largest yacht interior fit-out
specialists in the world. Depas yachts
business has been a strong and consistent
revenue generator, highlighted by the
strong order book and recent contract wins
totalling AED 235 mn. The yacht building
market continues to perform well and this
acquisition will increase our already strong
market share and allow us to derive
significant business efficiencies as we
incorporate the assets under
Vedders brand.
Diamond consumption
surges
A surge in rough diamond consumption by
the growing middle classes in China and
India will push global consumption to USD
26.1 billion in value, from its 2011 level of
USD 15.6 billion - reflecting an annual
compound growth rate of approximately
six percent per year according to the 2012
Global Diamond Industry Report released
by Bain & Company. The annual bellwether
diamond industry report, conducted in
collaboration with the Antwerp World
Diamond Centre (AWDC) finds that global
demand will outpace supply, signalling solid
pricing prospects and a strong positive
outlook for the industry overall.
The report includes a far-reaching survey
of more than 5,000 consumers in eight
countries, and a detailed examination and
findings from three core diamond markets,
the United States, China and India. In
addition to providing deep dives of the
markets in the U.S., China and India, the
report also includes a contrast in
behaviours and attitudes between the
more than 5,000 consumers surveyed by
Bain across eight countries. For more
information visit: www.bain.com.
bq | TECH | EXPERT PIECE
www.bqdoha.com
46
Structured cabling has long been the often overlooked, though critically important, compo-
nent of modern IT networks. Key to high-performance, reliable and innovation-enabling
connectivity, networks have growing increasingly complex in scale, speed, technology and
utilization and yet they remain a regular point of failure. The passive infrastructure, or
structured cabling, invariably accounts for up to 50% of network issues. And while most
problems can be easily remedied, years of adhering to archaic management and administra-
tion processes has exponentially increased the difficulty of doing so.
In many installations, inventory and management of physical infrastructure is done with
on-board tools such as Excel spreadsheets and Visio graphics. Sometimes, even paper,
pencil and post-it notes are used. Network administrators quickly reach the limits of their
capabilities if they try to apply these methods to large data centres or complex building
cabling systems. Incorrect, out-of-date and unreliable documentation are to the infrastruc-
ture what walking a tightrope without a safety net would be. Sensible expansion plans and
risk analysis are simply impossible. Added to this are the legal and compliance requirements
concerning data security, commercial practice and availability. There is no doubt that a
modern approach to cable management is now more important than ever.
Intelligent infrastructure management is a must for reliable enterprise
network performance
Business Rewired
Qatar
During incident
management, AIM solutions
can reduce the resolution
time, thereby providing
the potential for significant
savings in terms of both
IT resources and lost
business output
bq | TECH | EXPERT PIECE
www.bqdoha.com
47
Ready, AIM, fre
The purpose of an automated infrastructure
management (AIM) solution, sometimes
referred to as an intelligent infrastructure
management (IIM) solution, is to facilitate
the management of the passive infrastruc-
ture in the future. In an AIM system, the
entire infrastructure is represented in a
consistent database, a single source of
truth. This database provides precise and
real time information on the current state
and future requirements of the data center.
AIM is intended to optimize the business
process of an organization from an IT infra-
structure perspective. It eliminates strand-
ed capacity, facilitates end-to-end analysis
and agile infrastructure management and
aids predictive analysis and dynamic infra-
structure. Since in an AIM system the entire
infrastructure is represented in a consistent
database, inquiries into resources such as
server ports, space in cabinets as well as
energy requirements and cooling capacity
are quick and easy to answer precisely with
this database. Improved capacity utilization
of the existing infrastructure as well as the
simple and exact planning of changes and
expansions are immediate advantages of
AIM systems.
Not only this, these solutions vastly improve
the efficiency of operation and administra-
tion and can result in reduction of down-
time by 30 to 50 percent. During incident
management, AIM solutions can reduce
the resolution time, thereby providing the
potential for significant savings in terms of
both IT resources and lost business output.
AIM for innovation
The data from the system could also be
used to create useful reports for financial
budgeting and inventory of IT infrastruc-
ture. Strategic IT expansion forecast ques-
tions could be easily predicted based on the
reliable statistics and reports generated out
of the system. The system could also aid IT
managers as a planning tool to simulate the
future expansion of network, thus allowing
them to better estimate the bill for materi-
als required for implementing the project.
Once the project is realized as per the
planned layout, it could then be monitored
and administered.
The system software can seamlessly inte-
grate and synchronize with other custom-
er-owned automated building/facility
infrastructure management or data center
environment monitoring as well as security
management systems. Everything could
then be monitored and administered from a
common dashboard.
Implementing AIM
As a general piece of advice, a company
should understand the business require-
ments it hopes to meet though the imple-
mentation of such a system. These include
infrastructure and environment related
considerations, future growth plans and
the expectations from having such an
infrastructure management system.
With AIM, the choice of technology and
system is very important as it could either
raise limitations or could facilitate options
for expansion. The system configurations
need to be done wisely with the help of
template-based modeling with an intuitive
user interface. Open architecture systems
are recommended for easy integration
with third party systems. Contactless
data acquisition with no influence on data
transmission is a preferable solution, as it
does not violate well established cabling
standards for connecting hardware and
therefore presents a neutral and viable solu-
tion for any future transmission upgrade
requirements.
Addressing cost concerns
Cost and complexity of implementing AIM
over an existing infrastructure may post a
challenge to many organizations since this
entails revamping designs, replacing the
investments on cabling solutions, down time
issues and business continuity. Companies
should therefore look for solutions which
take this into account at the time of design.
Some leading vendors have ensured that
their solutions are retrofittable on existing
non-intelligent networks with minimal
effort. This allows compatibility with
standard installed cabling products with no
requirement of replacements with special
panels or cords, and even without discon-
necting active users.
Automated infrastructure management is
no doubt set to be the much needed revo-
lution for the cabling industry. Realizing the
benefits and investing in the right solutions
will ensure not only the future readiness of
the network but will also help organizations
maximize their current cabling investments.
Shibu Vahid is head of technical operations at
R&M Middle East, Turkey & Africa.
AIM eliminates stranded
capacity, facilitates end-
to-end analysis and agile
infrastructure management
and aids predictive analysis
and dynamic infrastructure
bq | TECH | IN CONTEXT
www.bqdoha.com
48
The new KitKat
Google has ended months of online
speculation about the name of the latest
version of its Android mobile operating
system by revealing it will be called Android
KitKat, after Nestls popular chocolate and
wafer confectionery. The creators of the
worlds most popular mobile platform have
teamed up with the worlds biggest food
and beverage company to name the next
release of the platform. Android has been
developed by the companys engineers
under sweet-themed names ever since the
release of Android Cupcake in 2009 and
continuing in alphabetical order until the
most recent version, Android Jelly Bean.
The news that the letter K will be dedicated
to Nestls KitKat will surprise most
technology commentators, who had widely
thought the latest version would be
Android Key Lime Pie. We couldnt imagine
a better name for our Android K release
than the tasty chocolate thats been a
favorite among the team since the early
days of Android, said Marc Vanlerberghe,
director of Android Marketing.
Cyber security assess-
ment service
Invensys has a new cyber security
assessment service to help its customers
understand the risks that might impact the
safety and reliability of their operations.
The assessment is a key part of any
security best practice program, helping to
ensure critical infrastructure protection
and compliance with corporate, industry
and/or government mandates. Performed
on-site, the control system assessment
provides a baseline of the users current
security position, and it can be used as the
starting point to develop a strategy to meet
the challenges of reducing and managing
security risks.
The assessment, which includes the
following service elements, allows Invensys
to develop a unique and customized
approach to addressing security issues -
site and system assessment: a site review
and system-specific vulnerabilities;
compliance assessment: Invensys
addresses compliance status by reviewing
operations and processes against required
corporate compliance standards; establish
security baseline: a security baseline allows
customers to gauge progress against
current status and operating models for
security.
Digital notebook updated
Bamboo Paper has been updated for the
iPad in a major redesign which works
intuitively with the Wacom Intuos Creative
Stylus. Already a successful app in its first
version, receiving more than five million
downloads, Bamboo Paper 2.0 has evolved
significantly. Originally an app focused on
note taking, it now offers a broad range of
writing and drawing tools, such as a
watercolour brush and pencil, that enable
users to create particularly individual
digital notebooks.
Bamboo Paper 2.0 still remains in its
unrivalled, uncluttered, clean design but
offers much more versatility through three
additional new notebook styles that differ
in paper types and covers. This way,
different demands and use cases find their
specific expressions. A Writer notebook, for
instance, may be used for note-taking or
creative writing, whereas an Artist
notebook could be used for more elaborate
sketching and drawing. The app now
features an improved, near perfect
palm-rejection, eliminating almost all
accidental marks while sketching or
drawing. Combined with the Intuos Creative
Stylus, the new digital stylus from Wacom,
Bamboo Paper 2.0 provides an even more
natural and intuitive drawing experience.
The Creative Stylus offers 2,048 levels of
pressure sensitivity and comes close to a
natural pen-on-paper feeling.
bq | TECH | IN CONTEXT
www.bqdoha.com
49
ERP crucial for customer experience
Epicor Software Corporation says a new
IDC Manufacturing Insights report has
uncovered how important a customer-
oriented strategy is for successful
manufacturers. The report also discovered
just how crucial enterprise resource
planning (ERP) solutions are in helping all
manufacturers improve their customer
experience, from those that are only just
starting out to those that already have a
deep customer-oriented culture in place. In
the brand new white paper for
manufacturers, entitled Get customers
inspired: How modern ERP can support
greater customer experience, IDC
manufacturing insights surveyed over 460
enterprises across multiple sectors
including industrial machinery and
equipment, high-tech and metal fabrication,
covering 13 countries worldwide.
The research also uncovered that
manufacturers can improve the customer
experience by investing in a modern, fully
integrated, flexible and easy to use ERP
system that streamlines operational
processes and connects back office with
front office by offering integrated CRM,
warranty and aftermarket functionality.
Sonys new portable wireless server
Sony launched the new Portable Wireless
Server (PWS) that provides consumers
convenient options to view, share, and store
content on the move or at home from their
smartphones. The versatile device serves
as a battery charger and card reader/writer
offering users added control when
managing multimedia data such as photos,
videos, music files, and office documents.
With a wireless connection, users can
transfer content utilizing PWS as a
convenient option for smartphones
especially for devices that do not have a
memory card slot.
The PWS can also connect several devices
via Wi-Fi at one time, allowing up to eight
users to simultaneously share and playback
same or different content. The PWS also
functions as a back-up power source for
smartphones or digital cameras.
Consumers can use the PWS for up to 10
hours of continuous MP3 playback. All
controls are managed by the smartphone
or tablet through the PWS Manager App
(available at Google Play or App Store).
Web version of debt collection
Latitude Software has released Liquid
Latitude, a Web-based version of its debt
collection software. Featuring a Web-based
collector desktop, Liquid Latitude is
designed to reduce costs, optimize agent
resources, and improve business continuity.
Liquid Latitude helps clients reduce costs
by minimizing IT installation efforts and
requirements. As a Web-based desktop
application, it also enables clients to make
use of remote and work-at-home agents to
optimize staffing efficiencies and assure
uninterrupted service in the event of a
disaster or outage. Liquid Latitude, which
is ideal for first-party creditors with
distributed offices, is offered as a Web-
based option to Latitude Softwares
thick-client collector desktop application.
Support for third-party agencies will follow
in subsequent releases of Liquid Latitude.
Next big IT trend SDN
Software-defined networking (SDN) is the
current next big thing being put through
the hype-mill by the analyst community
and vendors alike. Early adopters of SDN in
Qatar are currently investigating a wide
range of applications and use cases. These
include network virtualisation, large-scale
data centre infrastructure management,
traffic engineering, and WAN flow
management.
IDC reports that globally SDN currently
accounts for around $360 million in annual
business in a $30 billion networking
industry. This is expected to grow
significantly in future. Software-defined
networking takes virtualization to the next
level. By separating the control plane (the
part that holds the instruction manual) and
the data plane (where the data sits) within
a device, SDN enables the control element
to move with a virtual device around the
network. This means that a virtual device
automatically knows how to deal with an
application or service request regardless of
where it is within the infrastructure.
First smartphone
Umrah app
Hajjnet, a Dubai based startup has just
released a smart phone Umrah guide that
will support millions of pilgrims in every
step of their pilgrimage and with full social
media integration. UmrahSalam is a
mobile app that offers todays pilgrim the
real-time, location and process based
support they need to focus on the spiritual
aspects of fulfilling their religious
obligations. Features include prompting
pilgrims to read or hear the appropriate
Duas or prayers at the right time and
place; counting the number of Tawaf as
they are being performed and full camera,
map and social media integration.
For users of the app, the Umrah pilgrimage
is now a far more informed experience
right down to what to do and when by
actual visualisation of the process and key
routes so travellers know where they are
heading. Throughout Umrah, pilgrims are
prompted with the key Duas and
supplications that they can listen to as well
as read in Arabic, English or English
transliteration. The app also allows them to
compose their own personal Duas and
have them accessible at any time on the
toolbar. UmrahSalam enables travellers to
find their hotel from a comprehensive and
frequently updated database, and pin it to
a map so they can locate their hotel or any
other landmark to avoid getting lost.
bq | THE ARTS
www.bqdoha.com
50
Every age of wealth has its mega-collectors who help set taste and
stock museums with the art of the era. In this era, Qatar is emerging as a
major global player
By Tina Isanti, Ljubljana and Abhiraj Ghosh, Doha
Qatar
Culturally
Invested
bq | THE ARTS
www.bqdoha.com
51
Qatars conquest of the art market hasnt gone unnoticed with media worldwide report-
ing about the countrys newest art acquisitions and the astronomic prices they have been
prepared to pay for the pieces.
This became evident even before the acquisition of Paul Czannes Card Players for USD
$250 million, the highest price ever paid for a work of art. The painting is one of five in
a series of post-impressionist works. This was just one of many in the series of purchas-
es over the last few years that includes some of the best works by Mark Rothko White
Center (Yellow, Pink and Lavender on Rose 1950), bought in 2007 for USD 72.8 mn, Damien
Hirsts Lullaby Spring, 2002, for GBP 9.2 mn (USD 14.5 mn) bought at an auction in London
in 2007, as well as pieces of Andy Warhol, Jeff Koons and others.
This effort to create a first-class contemporary art collection, from scratch, hasnt just
sustained the international art market, experts say, but contributed to some of the escala-
tion in prices. Until Qatars 2007 purchase, the most expensive Rothko ever sold at auction
(Homage to Matisse) had drawn USD22 mn in 2005, less than a third of the price Qatar paid.
In 2011 the USD 250 mn spent for Card Players was four times the highest public price ever
paid for a work by Czanne.
While Abu Dhabi and Dubai are also keen to be recognized as cultural capitals and have
partnered with existing institutions - namely the Louvre and the Guggenheim - to establish
themselves, Qatar is going it solo. This is worth mentioning because of the confidentiality
agreements in place. Dealers and auctioneers are not prepared to go on record about deals
Qatar has made. Qatar is also believed to be the anonymous buyer of 11 Rothko paintings,
that were once in the Park Avenue apartment of financier J. Ezra Merkin, for USD 310
mn in 2009.
The purchasing is directed through intermediaries by one of the most influential woman
in the Arab world H. E. Sheikha Al-Mayassa bint Hamad bin Khalifa Al-Thani, chairperson
of the Qatar Museums Authority. She is determined to make Qatar a cultural center of the
world and is willing to spend about USD 1 billion a year to make that happen. The Economist
recently pronounced her the art worlds most powerful woman despite her very notice-
able absence at art galleries and auction houses. Auction houses and galleries will often
wine and dine collectors before a big sale. Significant works will be flown to their homes as
well. Qatar, however, doesnt participate in any of this. Their experienced art advisers do it
for them - previously the dealers Philippe Sgalot and Franck Giraud, and now Guy Bennett.
Bennett, a former co-head of Christies Impressionist and Modern Art department world-
wide, is a known master dealmaker. He is just one of a number of Christies operatives who
have taken on roles with Qatar. In June 2011 Edward Dolman, the auction houses former
chairman, was named executive director of the QMA and Jean-Paul Engelen, the director of
public art for the authority, is also a Christies veteran.
The Qatar team typically buys from dealers, though some of its most major purchases have
been at auction. Experts said that another intermediary may act on Bennetts behalf so
sales cannot be traced to Qatar, who want to keep their buying private to prevent driving up
the market and fueling speculation about their plans. Some experts like former Sothebys
top executive, David Nash, suggest Qatar will leave a big hole if they decide to withdraw from
the art market, which he doesnt see anyone
else ready to fill at their level. Some others
share the opinion that Qatar will remain on
the art or at least museum market for a
while, due to its ambitious plans of opening
nearly 20 different museums.
Where the western art will eventually end
up remains a mystery, although, there
are already three museums in Doha:
The National Museum of Qatar under
construction; the Museum of Islamic Art;
and Mathaf: Arab Museum of Modern Art
focused on regional art. Experts presume
the newly gained western collection will
possibly become part of some new contem-
porary art institution in the country.
For Qatar, buying art is part of its strategy
to launch itself onto the worlds cultural
stage before it hosts the 2022 World Cup,
as well as to become a desirable destination
for tourists from all over the world and
one of the art leaders in the region. So, if
Rothko and de Kooning and Kline, among
others, end up in Qatar, thats quite marve-
lous indeed.
Qatar is also believed to be
the anonymous buyer of
11 Rothko paintings, that
were once in the Park
Avenue apartment of
financier J. Ezra Merkin, for
USD 310 mn in 2009
Damien Hirst Lullaby Spring Mark Rothko, White Center (Yellow, Pink and Laven der on Rose), 1950
bq | THE ARTS
www.bqdoha.com
52
Setting the Contemporary Scene
In October this year, Damien Hirsts
largest ever exhibition will go on dis-
play in Qatar. Spanning over 25 years of
Hirsts iconic career, Relics is the artists
first solo show in the Middle East and
will be on display until January 2014 at
AlRiwaq Doha exhibition space.
Curated by the internationally
renowned writer, critic and curator,
Francesco Bonami, Relics is part of a
series of cultural initiatives organised
by Qatar Museums Authority in order
to foster discussions and cultural
exchange between the UK and Qatar.
It forms part of Qatar UK 2013 Year of
Culture which celebrates and showcas-
es the deep-rooted bilateral relations
between Qatar and the UK.
This event comes on the heels of sev-
eral smaller, albeit equally compelling
contemporary shows currently running
in town. One such exhibition, My Rock
Stars: Volume 1 by London-based
Moroccan artist/designer/photographer
Hassan Hajjaj, is presently showing at
The Gallery at Virginia Commonwealth
University in Qatar.
Research for My Rockstars started in
Marrakech, where Hajjaj lives for part of
each year, capturing shots of the people
he met: musicians, the snake charmer,
henna girl, bad boy, male belly dancer.
I wanted to give them a backdrop and
started from there, says the artist.
His sitters have more than a backdrop
though: they often wear clothes he has
designed, standing in spaces complete-
ly covered by patterns he has chosen,
with the photographs eventually set in
frames he has constructed.
Hajjajs first memories of photography
are from his childhood in Morocco. His
mother would occasionally dress him
in clothes sent by his father in England,
dunk him in perfume and take the
whole family to the local photography
studio for a family portrait to send to
his father.
Then there were the street photogra-
phers in Larache, where he lived until
the age of fourteen, who would take
pictures of children on a plastic horse,
wearing cowboy hats and so on.
A kindred spontaneity can be seen
in My Rockstars: Volume 1, a series of
studio portraits Hajjaj has been work-
ing on since 1998. These colourful and
engaging portraits combine the visual
vocabulary of contemporary fashion
photography and pop art, as well as the
studio photography of African artist
Malick Sidibe and other North African
inspirations, in an intelligent commen-
tary on the influences of tradition in the
interpretations of high and low brand-
ing and the effects of global capitalism.
This is only the latest in what has been
a busy few years for Hajjaj, exhibiting
his work in Europe, Africa and the
Middle East: in 2009 his photographs
were featured in the Bamako Ren-
contres Biennale; in 2012 he exhibited
work in Riad Yima, a house he designed
himself, featured in the Marrakech
Biennale. Hajjaj is currently working on
some solo projects, one to be displayed
in early January 2014, in Gusford
Gallery; and another exhibition with
Taymour Grahne in New York City in
mid-January 2014.
For an artist whose work fetches an
average of USD20,000 on a regular
basis, Hassan is a very humble person,
says Caitlin Doherty, exhibition and
speaker curator at VCUQatar. The
exhibition held at The Gallery is an
excellent opportunity for the rising fine
arts and contemporary arts enthusiasts
in the GCC to witness his one-of-a-kind
work, especially for those who missed it
last year during The Third Line exhibi-
tion in Dubai.
The art scene within Qatar has clearly
been blooming too. Apart from the
high profile purchases of modern and
contemporary art, there has been a rise
in young artists in and around the area.
Qatar is an exciting place to work right
now; you very much get the sense that
you are involved in something dynamic
and developing. Working at VCUQatar
helps since many of our students will
be Qatars artists and designers of the
future. We also work collaboratively
with so many other artists, designers
and arts and cultural organizations in
Qatar and beyond that new opportuni-
ties, perspectives and challenges are
constantly presenting themselves,
says Doherty.
In collaboration with QMA, VCUQatar
will also present Francesco Bonami
in conversation with Sultan Sooud Al
Qassemi. The conversation, part of
VCUQatars Crossing Boundaries Lec-
ture Series, will be led by well-known
Arab affairs commentator Al Qassemi
and focus on issues relating to contem-
porary art and the region, specifically
relevant to Hirsts Relics exhibition.
My Rock Stars: Volume 1 is currently
running at The Gallery at VCUQatar until
24 October, 2013. Hajjaj will also conduct
a workshop with the students just before
the closing, on 23 October from 4:00pm
to 6:00pm, an event which is also open to
the public.
VCUQatar presents Francesco Bonami in
conversation with Sultan Sooud Al Qassemi
on 30 October at 6:00pm, at the atrium at
VCUQatar. The event is open to the public.
These colourful and engaging
portraits combine the visual
vocabulary of contemporary
fashion photography and
pop art, as well as the studio
photography of African artist
Malick Sidibe and other North
African inspirations
bq | THE ARTS l IN CONTEXT
www.bqdoha.com
53
DFI partners with SFF
Doha Film Institute (DFI) recently
announced its new strategic alliance with
the Sarajevo Film Festival (SFF) and will
partner on a number of new initiatives at
their respective festivals to increase and
strengthen connections between Arab and
European cinema. This year, DFI curated a
selection of films from the Arab world
which were shown at SFF including Mahdi
Fleifels A World Not Ours (UK/Lebanon/
Denmark; 2012) and Ahds Sanctity (Saudi
Arabia; 2012).
Further extending the partnership, SFF will
promote Southeast European filmmaking
with a presentation of three films from its
official 2013 programme at the Qumra Film
Festival, Doha in March, 2014. Finally, DFI
will curate three recent works by Arab
filmmakers at next years SFFl and again
invite recipients of DFI grants to participate
in the CineLink Co-Production Market.
La Traviata at ROHM
For 160 years, Giuseppe Verdis La Traviata
has moved audiences with its classic tale of
self-sacrifice and redemptive love. The
immensely popular opera is a staple of the
standard operatic repertoire and is one of
the most-performed operas worldwide.
Italys Macerata Opera Festival, which takes
place every summer in the beautiful
surroundings of Arena Sferisterio, brings to
Muscat the legendary Traviata of the
Mirrors, designed for Sferisterio in 1992 by
Josef Svoboda; a beautiful and visually
striking production. A cast of exceptional
singers will make the operatic evening even
more memorable.
When & where: 22 and 26 October, 7:00pm,
Royal Opera House Muscat. Tickets priced
between OMR 10 and OMR 78.
A night under the stars
For only the second time in history, two of
the worlds most famous classical soloists
Jos Carreras and Katherine Jenkins are
set to perform alongside each other at the
du Arena, Yas Island, Abu Dhabi. Backed by
a full orchestra conducted by David
Gimenez, Jos Carreras and Katherine
Jenkins will come together to lead an
all-seated crowd of thousands on an
unforgettable journey through some of the
most highly regarded classical music ever
written. The event is expected to up open
up a new chapter in Abu Dhabis already
prestigious legacy of hosting classical
music performances; exposing a new
generation of UAE music fans to some of
the finest voices the world has ever heard.
When & where: 25 October, du Arena
(all-seated) Abu Dhabi. Ticket prices start
from AED 395 for A Reserve, AED 695 for
Gold, AED 895 for Platinum and AED 1,295
for Diamond categories.
Nadia Ayari at The Third Line
The Third Line introduces New York based
artist Nadia Ayari, with her exhibition The
Fountain and The Fig opening in the Project
Space. For this project, Ayaris predominant
aesthetic concerns remain with rendering
conceptual narratives, whereby the act of
painting becomes an important tool in the
dialogue. By using heavily conventionalized
symbols such as the fig and the tree, she
influences the imagery to acquire an
element of myth-like storytelling.
The exhibit includes five abstracted
flora-themed paintings that follow a
singular strain. The visuals are dreamlike
and surreal blood red rain covers deep
purple figs that spout out leafy tongues
from their burning red crevices. As is
suggestive in their titles Tongue, Splitting,
Pouring, Spit and Fountain there is a
violence and raw carnality that intermingle
to create a macabre vision. Also part of the
show are ink on paper drawings.
When & where: 18 September to 30
October, 10am to 7pm, The Third Line
Gallery, Dubai. Admission is free.
bq | R&R | ISLAND GETAWAYS
www.bqdoha.com
54
A top 10 list of some incomparable, anonymous retreats and getaways that will
offer you all the privacy and exclusivity that you crave
By Shereen DSouza, Doha
World
Paradise Found
Amanpulo, The Philippines
Named after the Sanskrit word for
peace, aman, and the Tagalog word for
island, Amanpulo is a serene retreat offer-
ing the pure white sands, turquoise seas and
endless blue skies for which the Philippine
archipelago is famed. The entire island
of Pamalican is dedicated to Amanpulo,
fringed by seven square kilometres of pris-
tine coral reef and lapped by the tranquil
Sulu Sea.
Amanpulos facilities enjoy a spacious layout
complementing their natural surroundings.
The resorts casitas are situated on the
beach, amongst the treetops or on the
hillside overlooking the Sulu Sea. Each has
its own private buggy allowing independent
travel on the island. The island is packed
with activities and luxurious amenities,
including a spa.
Rates: Start from QR3,200. Reservations:
+63 2 976 5200
Parrot Cay, Turks and Caicos
Parrot Cay in the Turks and Caicos is among
the Caribbeans pre-eminent islands. The
Turks and Caicos are located in the north-
ern Caribbean, an archipelago of eight
principal islands and more than 40 smaller
cays, of which Parrot Cay is one. The islands
are positioned some 925km south east of
Miami, which is a 70-minute flight away.
Its wrapped in sweeps of sands and peace-
ful seas featuring a spa and exceptional
cuisine. There are over 100 acres of unspoilt
wetlands and a powdered beach.
Accommodation in white wash with chic
teak finishing includes beachside villas,
some with private pools. The aesthetic is
pared down and sleek, four-posters wrapped
in soft cottons that billow with the breeze.
Activities include complimentary yoga and
pilates classes, non-motorised sports, cata-
maran sailing, windsurfing, kayaking, stand
up paddle boards, floodlit tennis courts and
water skiing.
Rates: Start from QR1,700. Reservations:
+1866 388 0036 (toll free)
bq | R&R | ISLAND GETAWAYS
www.bqdoha.com
55
Hayman Islands, Great Barrier Reef
Hayman, Australias most awarded private
island, presents astonishing natural beauty,
restorative peace, action-packed activity
and indulgent culinary experiences. Hayman
offers a front-row seat to the Great Barrier
Reef and a world of leisure and adventure.
Hayman is also opening up opportunities
for people to own a special piece of the
island. Designed by Kerry Hill, Hayman
Private Residences and Hayman Marina
Residences offer a modern contemporary
setting positioned to take full advantage
of the incredible views, vistas and natural
beauty of this island.
Rates: Start from QR1,700. Reservations:
+1800 122 339
Cayo Espanto, Belize
Cayo Espanto is not your average run of
the mill private island but a spectacular
visualisation of how paradise and luxury
come together as one. This five-star resort
is created for the discriminating few who
are looking for an ideal private island
resort getaway overlooking the Caribbean.
Located three miles from San Pedro in
the calm waters of the Western Caribbean,
off the coast of Belize, Cayo Espanto is a
spectacular and private retreat. Although
Belize is less than two hours from Miami,
Houston and Charlotte, it remains virtually
undiscovered.
With only seven villas and a staff to guest
ratio of two to one, you will always feel as
if you have the entire island to yourself. A
private, sea front, freshwater pool in every
villa, romantic dining on your personal
verandah or private dock and breath-taking
alfresco showers are just a few of the excit-
ing things to look forward to.
Rates: Start from QR5,200. Reservations:
+1888 666 4282 (toll free)
Perivolas, Santorini
A distinctive and unique boutique hotel,
overlooking Santorinis famous Caldera,
Perivolas provides simple luxury for
discerning guests looking for total relax-
ation in beautiful surroundings. Complete
with a swimming pool, spa, gourmet restau-
rant and outstanding sea views from every
accommodation, the hotel has earned its
30-year reputation for excellent service and
guest satisfaction.
Rates: Start from QR2,000. Reservations:
+30 22860 71308
bq | R&R | ISLAND GETAWAYS
www.bqdoha.com
56
Laucala Island, Fiji
Laucala Island is set amid coconut planta-
tions, sandy beaches, turquoise lagoons,
rich green mountains and breath-taking
natural beauty, often drawing comparisons
as a veritable Garden of Eden. Set upon
3,500 exclusive acres on its own island
in the archipelago of Fiji, Laucala Island
dazzles in the beautiful blue surrounding
waters. The resort prides itself on an inte-
gral philosophy, incorporating elements of
the entire island into each guests experi-
ence, and offering products and ingredients
raised and grown on the island.
True luxury is appreciated in the privacy of
the resorts 25 villas with the freedom to
experience a variety of activities, ranging
from golf and water sports to beach-side
horseback riding and more. The 25 villas
are comprised of one, two and three-bed-
room configurations, and each features its
own pool, lush tropical garden and spacious
indoor and outdoor areas. Each villa comes
with all food and beverage services includ-
ed, chauffeur, nanny, housekeeping, Tao
service, laundry and dry cleaning and both
welcome and farewell gifts. Guests are also
offered sports and activities, golf, tennis,
horseback riding, land and water packages
and diving as part of their stay.
Rates: Start from QR15,250. Reservations:
+679 888 0077
Necker Island, British Virgin Islands
Necker, Sir Richard Bransons private island
paradise, is situated in the British Virgin
Islands, a stunning and unspoilt area of
the Caribbean. At 74 acres, Necker sits in
turquoise waters surrounded by coral reefs
and fringed with beautiful white sandy
beaches. Necker can become your own
private hideaway - the island can be hired
exclusively for groups of up to 30 people,
or if youre not looking to hire it exclusively,
you can still enjoy the Necker experience
during Celebration Weeks when individual
rooms can be booked by singles or couples.
Activities include kite-surfing, sailing, wind-
surfing, water-skiing, kayaking, power-boat-
ing, and plenty more. They have two tennis
courts and a tennis professional happy
to give you a few pointers. Alternatively,
you could spend the whole day lazing in a
hammock! The beach pool pavilion is a hub
of activity during the day, with an infinity
pool and swim-up bar. The chef prepares
their famous sushi boat for an unforgetta-
ble lunch.
Rates: Start from QR7,200. Reservations:
+44 (0)208 600 0430
bq | R&R | ISLAND GETAWAYS
www.bqdoha.com
57
Fregate Island, Seychelles
With seven magnificent beaches, irresistible
tropical waters teeming with kaleidoscopic
marine life and a profusion of rare and
exotic flora and fauna, Fregate Island in
the Seychelles makes for a perfect private
island getaway. Beautifully crafted and
nestled nicely into the coastal line, its 16
residences - ranging from 400 to 700 sqm -
are naturally secluded, each with their own
luxurious terrace, large private infinity pool
and Jacuzzi.
The island boasts a plethora of unique
activities and the private inland harbour is
the first port of call for all sea adventures
and the wealth of marine wildlife. Thanks to
the great care taken to nurture the natural
habitat, organic vegetables and fruits are
grown on the islands plantation for hotel
guests to ensure the highest quality and
freshness of food.
Rates: Start from QR6,700. Reservations:
+49 6151 734 75 144
The House in the Sea, Cornwall
If you fancy a taste of the high life, then this
unique private island is just the ticket. With
its far-reaching coastal views and
suspension footbridge approach, The House
In The Sea at Newquay, Cornwall is a truly
magical home stay. With quirky interiors
fusing a cool New York vibe with coastal
luxury, the footbridge access to your iconic
island retreat is nothing short of
breathtaking.
The home stay features a luxury four-poster
master bedroom suite which occupies the
first floor, and has access via a private
staircase. Theres a BBQ area with a
Mediterranean feel besides a sunny garden
room. The sitting room has the best view,
complete with a 40 TV, billiards table and
a bar area with a fully stocked bar. The
unique extras provided include fresh
picnics, afternoon teas, seasonal wine
selections and beautiful fresh flowers.
Rates: Start from QR22,000 (7 night stay
for up to 6 guests). Reservations: +44 (0)
1637 881183
(Images: Uniquehomestays.com)
Cocoa Island, Maldives
Cocoa Island by Como is a private island in
the Maldives in the relatively undisturbed
South Male Atoll. White sandy beaches and
turquoise waters are paired with the resorts
simplistic elegance and understated luxury.
Rooms resemble local dhoni fishing boats
and have direct lagoon access. The Ufaa
restaurant serves fresh local produce and
seafood cooked in the Keralan style, while
the Faru bar overlooks the pristine infin-
ity-edge pool. Cocoa Islands spa, Como
Shambhala Retreat, offers rebalancing
treatments, including Ayurveda.
Rates: Start from QR2,700. Reservations:
+960 6641818
bq | R&R l REVIEW
www.bqdoha.com
58
For this review, bq visited Majlis at the Grand Hyatt, located minutes from the
business areas of Doha and the new district of West Bay Lagoon, popular for its
sheesha and traditional, but exquisite, Arabian cuisine creations
By Shereen DSouza, Doha
Qatar
This Majlis Sizzles
If time is an issue but food is a necessity,
take the weight off your feet, drop into
an oversized chair and munch on a fresh
chicken shawarma with salad and coffee
at Majlis for QR 66.
The Majlis exudes a warm environment complete with Arabian hospitality, making it an ideal
setting for private business luncheons. Whether you want to host your clients or impress
your boss, the outdoor seating by the pool is beautiful and makes a pleasant quiet afternoon
meal, albeit not the best idea for summers. The interiors are contemporary yet arabesque
and the cosy seating area with striking couches does full justice to its name.
Coming to the food, we were reasonably impressed. The food was delicious although very
plainly presented. We started off with varieties from the Cold Mezza, all priced under QR
25. Our favourites from the selection are Babaganoush and the Hummus Beiruty. The Hot
Mezza is quite exciting; we particularly liked the chicken wings, Cheese Sambouse, Toshka,
the prawns and the Lamb Makanek Lebanese sausages sauted and served with lemon
juice, onion, green capsicum and tomato paste.
After appetizers, we moved on to the main course. Their lamb kofta is simply brilliant and the
mixed grill is almost as good. The mixed grill consists of chicken (which was supreme), beef
and lamb chops - we were hoping for juicier chops, but they were tasty nevertheless. The
strawberry cheesecake and the bitter chocolate yoghurt mousse followed for dessert. We
savoured the cheesecake first, and it was so delectable, the mousse just could not keep up.
bq recommends the following dishes at Majlis:
Lamb koftas really juicy, succulent and topped with a delectable chilli paste.
Just perfect.
Their signature shawarma the portion is enormous, and the taste even better.
Jawaneh (deep fried chicken wings with a lemon garlic, parsley and butter dip) this
one is literally finger-licking delicious.
Kredes (sauted prawns, lemon, coriander, garlic and rocca)
Strawberry cheesecake will exceed your expectations, a must try!
The service was good. The waiter knew what he was talking about and very politelyexplained
the intricacies of several dishes. At night, the Majlis buzzes with traditional sheesha lovers
and is a great place for a lively night out, but if youre looking at a discreet destination for
an afternoon meal while discussing a deal, we definitely recommend this place.
Cuisine: Arabian
Recommended for: Business lunch, night
out with friends
Timings: Sat - Wed 12:00pm to 12:00am
Thurs - Fri 12:00pm to 2:00am
Location: Grand Hyatt Doha
Meal for two: QR 250 - 500
Alcohol served: Yes
Reservations: +974 44481234
bq | R&R l IN CONTEXT
www.bqdoha.com
59
Mouawad introduces
Grand Ellipse
accessories
The Mouawad grande ellipse accessories
collection recently hit Mouawad boutiques
in the UAE, Oman, Kuwait, Qatar and Saudi
Arabia. Known for protecting against
negativity and carried by soldiers in the
past to guard against injury, black onyx is
the dominant gemstone in the new
Mouawad mens collection. The grande
ellipse rings and cufflinks are presented in
two different designs, each one available in
both 18K white and rose gold with black
onyx or mother-of-pearl - giving a black or
white option.
The grande ellipse misbahas - available in
both white and rose gold - feature
traditional thirty three black onyx prayer
beads complemented by white diamonds.
Handcrafted in carbon fibre, palladium,
rose gold and lacquer finishes, the grande
ellipse rollerball pens round out the
collection offering the perfect
accompaniment to the grande ellipse
timepieces.
Jazzy blues & panoramic views
The new season of brunch is back at The
St. Regis Saadiyat Island Resort, Abu Dhabi
as it welcomes the upcoming cooler
months. Introducing The Jazz Brunch, the
refreshed Friday brunch concept at Ola,
the Mediterranean influenced restaurant
promises a personalized and entertaining
experience.
The St. Regis association with jazz dates
back to 1930s Jazz Age when The St. Regis
New York was host to jazz legends such as
Count Basie and Buddy Rich. The St. Regis
Saadiyat Island Resort continues that jazz
heritage with The Jazz Brunch as it
introduces the Blue Light Collective
featuring female vocalist and saxophonist
Jooles. Accompanied by a pianist, the
dynamic duo will serenade with soul, old
blues and jazz classics.
The jazz band will complement the
restaurants culinary delights that include
the choicest selection of Mediterranean
fare ranging from fresh seafood and grilled
delicacies to decadent desserts along with
live cooking stations both indoor and on
the restaurants large outdoor terrace,
further adding to the truly bespoke
experience. For reservations,
call +971 2 498 8008.
Ajmal launches limited
edition collection
Eternal by Ajmal recently launched its new
Limited Edition collection. Encompassing
refined elegance and sophistication, this
unisex eau de parfum satisfies the
proclivity of exquisite connoisseurs.
Enthusiasts love the luxurious fusion of
old-world Arab charm and modern chic,
while this same vision is translated in
Eternal by Ajmals fragrances; a collection
of true classics that are desired by
aficionados. The Limited Edition collection
includes five new compositions based on
Vetiver, Amber, Oudh, Musk and Patchouli.
Available in Eternal by Ajmal stores as a 50
ml each, the Limited Edition collection is
priced at AED 500 for each fragrance.
Hayman Islands to be relaunched
Mulpha Australia has entered into an
agreement with Kerzner International
Holdings Limited, a leading international
developer and operator of destination
resorts, casinos and luxury resorts, to
assume management of the highly
acclaimed luxury island resort Hayman,
Great Barrier Reef. Hayman will undergo a
multi-million dollar renovation and be
re-launched as One&Only Hayman Island in
April 2014 One&Onlys first resort in
Australia.
Mulpha continues to maintain full
ownership of the island and the resort. The
Pool Wing will be redeveloped and feature
new all-suite living spaces offering either
one or two bedrooms. New Hayman rooms
and Hayman suites, featuring ocean and
lagoon views, will be introduced with
reimagined interiors and amenities. The
iconic pool will offer a renewed life and
energy, complete with cabanas and day
beds. Some suites will provide direct
access to the pool, allowing guests to enjoy
the water straight from their private
terrace.
bq | VISUAL DATA | PART 1
www.bqdoha.com
60
Billion USD
44.97
37.82
21.67
17.27
4.74
3.64
Kuwait
UAE
Qatar
Saudi Arabia
Oman
Bahrain
Source: UNCTAD
The first in a series of maps and infographics detailing
the GCC. Volume 1: Part 1
By Jure Snoj, Doha
GCC
GCC Illustrated
The Gulf countries are known for investing abroad, making famous purchases, such as
Qatars Shard in London and UAEs acquisition of the football club Manchester City. Not all
of them are investing huge amounts though, with Bahrain and Oman investing a modest
USD 3.64 billion and USD 4.74 billion respectively. To put it into perspective, UK, as one of
the biggest investors, has made USD 438 billion of investments in the last five years.
Considering its size, Kuwait is a big investor, surpassing countries such as Brazil. On the
other hand, Saudi Arabia as a bigger economy is dwarfed in comparison to Australia, a
developed economy with similar population size, which has invested USD 107 billion abroad
in the last five years. Although GCC countries do invest abroad, they are not the big world
players, as one might think.
Foreign direct investments made by Gulf countries in the last five years
bq | VISUAL DATA | PART 1
www.bqdoha.com
61
A sovereign wealth fund (SWF) is a fund owned by a state, composed of financial assets such
as stocks, bonds, property or other financial instruments. Sovereign wealth funds are
entities that manage the national savings for the purposes of investment. The GCCs
sovereign wealth funds are some of the largest in the world, with UAE, Saudi Arabia, Kuwait
and Qatar ranking in the Top 10. Bahrain and Oman are a bit less imposing with their funds
worth USD 7 billion and USD 8 billion respectively. The origin of GCCs funds lies in, as you
might have guessed, natural resources like oil and gas. The regions combined worth of
these funds stands at USD 2 trillion, unmatched by any political or economic union in
the world.
3.
Norway
737bn USD
9.
USA
114bn USD
7.
Russia
189bn USD
5.
Singapore
421bn USD
1.
China
1,635bn USD
10.
Australia
89bn USD
8.
Qatar
115bn USD
4.
Saudi Arabia
681bn USD
6.
Kuwait
386bn USD
2.
UAE
817bn USD
Largest sovereign wealth funds
bq | VISUAL DATA | PART 1
www.bqdoha.com
62
Saudi Arabia
Executions:
359 in last 5 years
Apostasy
Gay and lesbian sexual relations
Rape
Murder
Espionage
Drug trafficking
Terrorism
Treason
Sorcery
Adultery
Armed Robbery
Consumption of intoxicants
Source: Amensty International
Kuwait
Executions:
5 in 2013
Terrorism
Treason
Drug trafficking
Kidnapping
Espionage
Rape
Murder
Bahrain
Executions:
reported last in 2010
Murder
Terrorism
Espionage
Drug trafficking
Child rape
Treason
Qatar
Executions:
reported last in 2000
Murder
Terrorism
Drug trafficking
Economic crimes
Treason
Espionage
Rape
UAE
Executions:
3 in last 5 years
Murder
Rape
Treason
Adultery
Terrorism
Espionage
Drug trafficking
Oman
Executions:
3 in 2001
Espionage
Terrorism
Piracy
Drug trafficking
Aggravated murder
Treason
All the GCC countries have provisions for the death penalty as an
option of punishment in their legal systems. However, it varies from
country to country how frequently it is carried out. For instance
Qatar and Oman resort to hanging or death by firing squad as
methods of execution, the latter being more prevalent. However, the
last reported execution in both countries took place over 10 years
ago. Bahrains last known execution took place in 2010 and death by
firing squad is stipulated by the countrys penal code.
The UAE has carried out three executions in the last five years.
Execution by firing squad is the preferred method, and though
stoning is a religiously stipulated punishment for offenses such as
adultery under Sharia law, there have been no reports of any recent
execution by stoning in any of the Emirates. Kuwait, on the other
hand has witnessed five executions in 2013 alone, and we still have a
few months to go. Their preferred method of execution is by
firing squad.
Saudi Arabia tops them all with a whopping 359 executions taking
place in the last five years. The countrys legal system reserves the
right to execute perpetrators on the following grounds, which might
seem rather exotic to a foreigner and which cannot be found in the
other gulf countries: sorcery, apostasy, gay sexual relationships and
consumption of intoxicants among others. Sources indicate that
public beheading is probably the common method of execution in
Saudi Arabia though public stoning can be used to execute
individuals who have been convicted of acts such as adultery. In
both instances, the condemned are sedated prior to execution.
There are reports that Saudis have exposed the body (with head
sewn back on) of the condemned to public indignity, including
crucifixion, after execution for the crime of highway robbery
resulting in death.
What can get you executed in the Gulf
bq | IN CONTEXT
www.bqdoha.com
63
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www.bqdoha.com
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