ISSUE 10 | MARCH 2013

BUSINESS
How energy irms operate Get MBA powered by research Select a professional mover

MONEY
IFS: Food retailing success MasterCard payment solutions Mortgage lending lagging

LIFESTYLE
Tranquil trip on water Luxury sedan GS 350 Armour cars for safety

this issue
SIIL, A DIVERSIFIED FIRM QATAR: INNOVATION STRATEGY TIPS TO MANAGE NETWORKS

Malls muscle their way in

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BUSINESS
BIZWATCH
6
ISSUE 10 | MARCH 2013

CONTENTS
Issue 10 | March 2013
A concise overview of the activities during the month.

BUSINESS
How energy irms operate Get MBA powered by research Select a professional mover

MONEY
IFS: Food retailing success MasterCard payment solutions Mortgage lending lagging

LIFESTYLE
Tranquil trip on water Luxury sedan GS 350 Armour cars for safety

this issue
SIIL, A DIVERSIFIED FIRM QATAR: INNOVATION STRATEGY TIPS TO MANAGE NETWORKS

LABOUR LAW
20
Legal experts say that erroneous practices like hiring of workers without proper paperwork occur only due to non-comprehension of the legal set-up for the sponsorship system and other related procedures.

Provisions for secure employment

Malls muscle their way in

HR PRACTICES
24 Loyalty under test
R. Ramesh takes a look at the fiery debate in HR circles about the flip side of staying with the same employer for too long. Globally competitive organisations have pitched in and there is a growing feeling that long years in the same office apparently indicate non-marketable material with no abstract ideologies.

EXECUTIVE EDUCATION
16 Research and stay ahead

COVER STORY
10 Malls muscle their way in
In recent years Qatar has emerged as one of the markets to be in, both for high-end and mid-market global retailers, marking the entry of many international retail giants who have made an impact on the local retail market in terms of product pricing, promotions etc.

PROFILE
27 Diversified public shareholding firm
Salam International Investment Limited pursues a highly focused approach of establishing, incorporating, acquiring and owning enterprises in the GCC and MENA region as a leading conglomerate owning and managing over 35 business units in four sectors.

FINANCE
30 Payment innovations in the market
Safdar Khan, Market Manager, Qatar, Oman and Kuwait, MasterCard, says that card penetration in the region is quite low and there is great potential for growth in markets like Qatar.

ENERGY
36 Oil & gas firm operations

REAL STATE
33 Scope for mortgages to grow
ADVERTISING ENQUIRIES

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Growth in mortgage lending has remained very modest in Gulf Cooperation Council countries when compared with international standards, writes D Madhu.

ENTREPRENEURSHIP
44 IFS: Food retailing success story
Mr. William Aranha, Managing Director of Integral Food Services, a major player in the hospitality, retail food services and contract catering business in Qatar, speaks to M.V.A Kumar about the successful strategies that have given IFS an edge in a highly competitive and demanding market segment.

Gulf Publishing & Printing Co.W.L.L. Website : www.theexecutive.qa

A Publication

LOGISTICS
38 Select a professional mover

INFOTECH
48 Resort to course correction
Information technology expert Sufian Dweik opines that IT managers in Qatar can overcome enterprise networking challenges through smart investments

COLUMNS
Scan the QR Code with your smartphone or log on to www.theexecutive.qa

40 Tornado Talk 41 Offshore Impression

SURVEY
42 Qatar innovates

CONTENTS
Issue 10 | March 2013

Lexus GS350 is a powertrain that makes a deep impression on the road. The GS handling game has clearly been elevated. The primary handling and appearance enhancements of Lexus GS350 appear to be consistent. The GSs upgraded engine and paddle-shift six-speed transmission have been carried into the latest model unaltered.

MOTORING
56 Game changing luxury sedan
With the fourth-generation 2013 GS 350, Lexus does appear to break away from their luxury-overload mould. The 2013s body and chassis are all-new. The front sheet metal is indisputably more aggressivelooking with huge air intakes that widen towards the pavement. There are menacing HID headlights with LED running lights, and LFA inspired curves.

TRAVEL
52 Tranquil trip on water
Beyond skiing, snowshoeing, snowmobiling, skating and winter zip-lining, the latest tourist attraction in northern Michigan is getting in a float boat and having A River Runs Through It experience in the dead of winter. For those interested in going fly-fishing in winter, Northern Michigan river offers a Zen-like experience, writes Ellen Creager.

TECHNOLOGY

50 Armour cars for safety

Armouring of vehicles as an industry has been doing well amid rising unrest because governments, oil firms and rich individuals are all willing to spend more for protection. For companies such as Canadas INKAS and Britains Jankel etc, it has been a lucrative decade. Even with conflicts on which the industry grew winding down, there are still deals to be done.

Follow us on :

www.facebook.com/TheExecutive.qa

www.twitter.com/theexecutive_qa

www.theexecutive.qa

From the editors diary

Editor-in-chief: Darwish S Ahmed Editor: M.V.A Kumar Marketing Manager: James John Feature Writer: Sami Said Ali Layout and Design: Renju Varghese Jiji Yohannan Manager - Special Projects: Sharon Desouza Christopher Desouza Press Manager: Abraham Paulose Circulation Manager: Adel Hammam Copy Editors: John Varghese Evette Quadros Sudip N Pradeep Kumar Columnists: Stephen Anderson Stephane Michel Contributors: Kavinda Hettiarachchi R Ramesh D Madhu Editorial enquiries: Tel: +974 44466651
Email: theexecutive@gulf-times.com

Malls and hypermarkets make shopping attractive

A casual survey would reveal that there are two types of people around us those who like to shop and those who think it is a boring activity. This may sound like a generalisation, but it can be said that most women fall into the rst category and their husbands, fathers, brothers and ancs into the second. As in most other cases this one too could have exceptions.
In Qatar, which has a signicant number of high net-worth individuals with an afnity for luxury goods and a brute majority of middle and low-income employed people with an uncanny eye for bargains, particularly for goods of daily consumption, hypermarkets and malls do not have to bank on any one gender. When women go shopping their men too faithfully tag along, allowing the homemaker to take the decision and choosing to assert themselves only at the cash counter when either card is swiped or hard cash is coughed up. Here again the second breed of shoppers is a fast depleting one because attractive loyalty programmes, built into credit cards, tilt the arithmetic in favour of ashing the card and scoring points. This also explains why one ends up seeing the same faces at ones favourite hypermarket or mall. With malls attracting people, particularly families like magnets there is often a mini trafc jam outside most of them. Busy hypermarkets often give one the feeling that the entire country is out shopping and automobiles of all makes, sizes and shapes are in their parking lot, where hawk-eyed motorists prey and also pray for vacant spaces. This fervour is again visible in queues at the counter, all of which translate into neat prots for most retailers. The most successful of their ilk have transformed their stores into family destinations with something for every family member, not to forget the irresistible lure of a possible rafe win which tempts the shopper into spending more. While this issue for The Executive.qa gives malls and power retailers their due importance in the world of business, we also have some interesting insights into other areas of the business world from our ve knowledge partners.

Enjoy reading!

M.V.A Kumar Editor theexecutive@gulf-times.com

BIZWATCH
QATAR IN NEWS
STATE AT FOREFRONT CREATION OF JOBS Qatar ranks rst in the world for creating employment opportunities for its population, according to a study conducted by the Boston Consulting Group (BCG). The study, named Sustainable Economic Development Assessment (SEDA), was conducted among 150 countries around the world considering each countrys well-being and performance according to its income level.

GROWTH

MARKETS

01

01

QIG DOUBLES 2012 PROFIT TO QR152MN

01

DOHA BANK EYES RAISING QR1.55BN FROM RIGHTS

02

BANK LOANS TO GROW 15% AS LIQUIDITY BUILDS UP

Qatari Investors Group, which is primarily engaged in the production and sale of cement, has more than doubled its net prot to QR152mn in 2012 on strong operating earnings. Net prot from cement alone was QR90.83mn, from contracting and engineering (QR61.25mn), real estate (QR12.3mn) and marine and aviation (QR5.91mn), whereas industrial subsidiary showed a net loss of QR0.04mn and other segments (QR22.47mn).

Doha Bank is aiming to raise up to QR1.55bn through its rights issue, which will hit the market next week. The bank, which has embarked on an expansion drive, is issuing 51.67mn shares at QR30 (including a premium of QR20 a piece) in the rst phase; while the second phase will see the lender issue global depositary receipts (GDRs).

02

02

QE LAUNCHES LIQUIDITY, PRICE STABILITY SCHEMES

AL MEERA PROFIT JUMPS 36.8% TO QR105.7MN

Al Meera Consumer Goods Company has posted a net prot of QR105.7mn in 2012, up 36.8 per cent on the previous year. The companys revenue reached QR1.5bn in 2012, which is 29.2 per cent higher compared with 2011. The board of directors at a meeting presided over by Al Meera chairman HE Abdulla bin Khalid al-Qahtani recommended distributing a cash dividend of QR8 a share, which is equivalent to 80 per cent of the nominal share value.

Qatar Exchange has launched liquidity providers (LP) scheme, in what could pave way for enhanced liquidity and greater price stability of admitted stocks. Besides, the bourse has also launched securities and lending borrowing (SLB) scheme, enabling settlement of securities sold short, as well as sponsored access.

03

MOU SIGNED TO PROMOTE STATE AS TOP TRADE CENTRE

03
Qatar may see greater demand for credit with the countrys banking sector estimated to see a growth in loan disbursement of up to 15 per cent this year on the back of improved liquidity, a recent study shows. Liquidity conditions have materially improved with the current loan-to-deposit (LDR) ratio at 107 per cent, QNB Financial Services said in its latest report.

UDC NET PROFIT RISES BY 32% TO QR730MN

03

QATAR AND UAE TOP 2012 MENA ACTIVITY IN REGION

Qatar and the UAE topped in mergers and acquisitions in the region last year, according to Ernst and Young (E&Y). From an acquirers perspective, countries that ranked highest in terms of announced deal value in 2012 were the UAE at $13.5bn, followed by Qatar at $11.2bn and Kuwait with $3.9bn. Of the top 10 announced deals by value in Mena (Middle East and North Africa) in 2012, four of the deals were acquired by Qatar and three of the deals were acquired by the UAE.

Driven by growth opportunities in the country, United Development Company posted a net prot of QR730mn in 2012, UDC said in a statement. The company earned revenue of QR2.73bn in 2012, compared with QR1.91bn in 2011, following which the company proposed a dividend payment of QR1 per share. While net prots increased 32 per cent to QR850mn for 2012, as compared to 2011, excluding revaluation gain on investment properties amounting to QR645mn, the prot attributable to owners of the company stood at QR730mn.

Qatar Chamber has partnered with a consultancy rm in a bid to promote Qatar as a top business investment destination in various parts of the world. QC signed a memorandum of understanding (MoU) with Inside Investor, a known global business information provider and investment consultancy rm.

04

QATAR-INDIA BILATERAL TRADE SURGES 91%

04

QIIC PROFIT JUMPS 30% ON INCOME GROWTH

Qatar and India bilateral trade has seen a 91 per cent increase in a year up to 2011-2012 and totalled about QR50bn, Indian ofcial data shows. The total trade between the two countries stood at about QR26bn in 2010-11, according to Indias Department of Commerce. India is among Qatars top four export markets, driven largely by trading on energy and petrochemical products.

04

STATE IS THE THIRD LARGEST PROJECTS MARKET IN GCC

Qatar Islamic Insurance Company has reported a 30 per cent jump in its net prot to QR58.29mn in 2012 as shareholders income grew faster than expenses. The company has recommended at 35 per cent cash dividend, which will have to be approved by shareholders at an annual general assembly, which is to be convened at a later date.

05

QATAR-CHINA 2012 TRADE JUMPS 45% TO $8.45BN

Qatar is the third largest projects market among the GCC countries behind Saudi Arabia and the UAE, according to the Meed Insight projects forecast for the GCC countries. Speaking on the upcoming projects in the country at the Meed 2013 Qatar Conference held at Grand Hyatt hotel, Ed James, head of Meed Insight, said that unlike other countries in the region where construction accounts for the major share of the projects, transportation takes the major share of projects in Qatar.

05

QEWC PROFIT RISES 11% TO QR1.44BN

Bilateral trade between Qatar and China jumped 45 per cent to $8.45bn in 2012, Chinese Ambassador to Qatar Gao Youzhen said. China mainly imported energy products such as oil and gas from Qatar, while Qatar imported a large number of items from China such as electrical and construction materials, daily use materials, furniture and many more, said Gao.

Qatar Electricity and Water Company (QEWC) reported an 11 per cent rise in net prot to QR1.44bn in 2012, mainly helped by robust interest and dividend earnings and by settlement of dispute with EPC contractors for its RAFB2 project. Sales rose 3 per cent to QR4.52bn but cost of sales grew faster at 6 per cent to QR2.36bn, resulting in a at path for gross prot at QR2.17bn, according to its nancial statement.

06

COMMERCIALBANK EYEING EXPANSION

Commercialbank is studying the prospects of further expanding both within Qatar and abroad, said managing director Hussein AlFardan. In Qatar, Commercialbank is considering Lusail, which is under development. We do have land in a strategic location in Lusail and we will go there once the ultra modern city develops, Alfardan said.

BIZWATCH
DEALS ENERGY RECOGNITION

01

QIB, NBK HOLDING SIGN ISLAMIC FINANCING DEAL

01

TASWEEQ IN DEAL TO SUPPLY CONDENSATE TO ENOC

01

ROLLS-ROYCE RECOGNISES DOHA TEAMS ACHIEVEMENTS

Qatar Islamic Bank (QIB) has signed a QR800mn nancing deal with NBK Holding. The signing ceremony was held at NBK Holdings headquarters and was attended by Sheikh Nawaf Nasser bin Khaled al-Thani, chairman and CEO of NBK Holding, and Ahmad Meshari, acting chief executive ofcer of QIB. HE Sheikh Nawaf said: The nancing agreement with QIB will enable NBK to move forward with its ambitious expansion plans.

Qatar International Petroleum Marketing Company (Tasweeq) has signed a contract with Emirates National Oil Company (ENOC) for the supply of 20,000 bpd of condensate for the latters Jebel Ali renery. The annual contract underlines ENOCs commitment to explore new condensate suppliers to ensure a steady supply of rened products and meet the growing domestic requirement for fuel products in Dubai, the company said.

02

SIEMENS BAGS QR138MN QATAR STEEL SUBSTATION DEAL

02

JAPAN EYES MORE LNG FROM QATAR Rolls-Royce Motor Cars Doha was awarded the title of Global Aftersales Dealer of the Year 2012 at the annual Rolls-Royce World Dealer Conference held in London. It overcame competition from dealerships from across the world - London to Beijing - for the title, following an outstanding year in which it recorded 20 per cent growth in sales over the previous year and had the highest scores for customer service and aftersales facilities and processes. DOHA BANK GROUP CEO WINS PRESTIGIOUS AWARD Group chief executive officer of Doha Bank Group, R Seetharaman, has been awarded the prestigious CA Global Achiever Award, at the Institute of Chartered Accountants (ICAI) Awards 2012 ceremony held in Mumbai, India. Established in 1949, the ICAI is the second largest professional accounting body in terms of membership. Currently it has more than 200,000 members and more than 1mn students.

Siemens, a global powerhouse in electronics and engineering, has bagged a QR138mn ($38mn) contract from Qatar Steel Company to build a high-voltage substation. The substation will feature advanced technology and replace an existing facility within 14 months, ensuring more efcient and reliable power supply to Qatar Steels complex at Mesaieed Industrial City.

03

MAERSK QATAR UNIT, GDI SIGN QR770MN CONTRACT

Japan, which faces uncertainty in its nuclear energy options, expects liqueed natural gas (LNG) imports from Qatar to rise in view of its increasing energy demand. After the earthquake, Japan has drastically increased its imports on LNG from Qatar and will continue to do so for the next several years, Morihiro Yoshida, managing director of Japan Co-operation Center, Petroleum (JCCP) told reporters on the sidelines of 2nd Joint Qatar-Japan Environment/21st Joint GCC-Japan Environment symposium.

03

QATARGAS $1BN GAS RECOVERY PROJECT EYES 14 COMPLETION

02

A pioneering $1bn Qatargas project aimed at recovering gas that would otherwise be ared during LNG ship loading at Ras Laffan is expected to be completed in 2014. The Jetty Boil Off Gas (JBOG) Recovery Project is part of the Common Facilities Projects at Ras Laffan Industrial City. This will enable boiled-off gas to be collected from LNG ships and compressed at a central facility, Qatargas said in its latest newsletter. Maersk Oil Qatar and Gulf Drilling International (GDI) signed a QR770mn, four-year agreement under which the former will contract Al Jassra, GDIs new jack-up drilling rig, for drilling and well work-over activity in the Al Shaheen eld, Qatars largest offshore oil eld. The agreement was signed by Maersk Oil Qatars managing director Lewis Afeck, and GDIs chief executive ofcer, Ibrahim J al-Othman.

04

QATARS INTL RESERVES REBOUND TO $40BN

03

HONOUR CONFERRED ON DOHA BANK GROUP CEO

Favourable energy prices and prudent scal management had led to a rebound in Qatars international reserves to $40bn in November 2012 compared with a low of $14bn in November 2011, a QNB report shows. Qatars healthy savings are also reected in the country generating a surplus in current account balance to $16.6bn in the third quarter of 2012, QNB Financial Services said in the report.

Doha Bank Group CEO Dr R Seetharaman was honoured with the prestigious Distinguished Fellow of IOD at the 23rd World Congress Leadership and Quality of Governance and Presentation of Golden Peacock Awards ceremony. The event was hosted by the Institute of Directors (IOD) at The Lalit Ashok hotel in Bangalore, India.

04

AHLI BANK WINS EXCELLENCE AWARD

04

QTEL TO RAISE ITS STAKE IN ASIACELL IRAQ SHARE OFFER

05

QATAR SHELL, QDB JOIN HANDS TO HELP SMES

Qatar Telecom (Qtel) will raise its 53.9 per cent stake in subsidiary Asiacell as part of the Iraqi rms $1.35bn share sale, the largest ever stock listing on the Baghdad bourse, an exchange ofcial said. Qtels broad strategy has been to take greater control of its foreign units; since last year it has spent $2.16bn to raise its holdings in Tunisiana and Kuwaits Wataniya to 90 per cent or more.

Qatar Shell has partnered with Qatar Development Bank paving the way for local small and medium enterprises (SMEs) to supply contracts for Shell businesses in the country. This new partnership will provide local companies and manufacturers access to new business opportunities as well as help them raise their operating standards in order to fulll global requirements, according to a statement.

Ahli Bank QSC has been awarded an Excellence Award for 2012 for Straight Through Processing (STP) of their dollar payments by Bank of New York Mellon. Ahli Banks STP processing standard for remittance products ensures seamless processing of dollar remittances by the New York-based Correspondent, Bank of New York Mellon. The STP Award acknowledges outstanding performance with respect to payments processing, said a bank statement.

BIZWATCH
DECLINE LAUNCHES CSR ACTIVITY

01

WOQOD POSTS NET GAIN OF QR1.15BN

01

2013 CADILLAC ATS UNVEILED BY MANNAI

01

SILATECH HOSTS YOUTH DELEGATION

Qatar Fuel (Woqod) has posted a net prot of QR1.15bn in 2012, which indicates a slight decline of 0.02 per cent compared with QR1.18bn in 2011. Woqods board of directors has recommended to the company general assembly to distribute cash dividends of QR519.75mn or 100 per cent of the value of the paid up nominal capital, which translates into QR10 per share.

Mannai Automotive, the exclusive dealer of Cadillac in Qatar, launched the 2013 Cadillac ATS luxury sport sedan at a ceremony at the Mannai-Cadillac Showroom on Salwa-C Ring Road Junction. The award-winning luxury sport sedan by Cadillac is the lightest car in its class with a unique architecture designed for nimble driving performance.

Silatech recently hosted a group of 25 graduate students and professionals from the US and Europe for the second Gulf Exchange, a programme designed to broaden the participants understanding of the social, economic and political dimensions of the Middle East.

02

02

INDUSTRIES QATAR NET PROFIT MISSES FORECASTS

02

LATEST CAMARO ZL1 POWERS INTO QATAR

IBQ STRATEGIC PARTNER OF CONFERENCE ON WOMEN

Petrochemicals and metals company Industries Qatar (IQ) posted a 5.9 per cent rise in fourthquarter net prot, but still trailed analysts forecasts as losses from fertiliser shutdowns hurt protability. The Gulfs second-largest chemical producer by market value behind Saudi Basic Industries (Sabic), made a net prot of QR1.8bn ($494.4mn) for the fourth quarter, it said in a statement, compared with QR1.7bn a year earlier.

Jaidah Automotive, a subsidiary of the Jaidah Group and the exclusive importer and distributor of Chevrolet in Qatar, has announced the arrival of Chevrolets all-new 2013 Camaro ZL1. Boasting a supercharged 6.2litre V8 engine that produces 580 horsepower, the ZL1 is the fastest Camaro ever, with a top speed of 296kph and accelerating from 0 to 100kph in 3.9 seconds.

The International Bank of Qatar (IBQ) has signed as the Strategic Partner of the How Women Work conference. The conference introduced a stellar line-up of speakers who will touch upon key topics related to the personal and professional lifestyle of women in Qatar.

03

QP LAUNCHES CAR TYRE SAFETY INITIATIVE

03

03

DOHA INSURANCE PROFIT SLIPS 8% TO QR60.29MN

LAGOONA MALL UNVEILS NEW SHOPS AND EATERIES

Doha Insurance Company (DIC) has reported an 8 per cent fall in net prot to QR60.29mn in 2012 on slippage in its core income and higher total expenses. The company has suggested a total of 20 per cent dividend (10 per cent cash and 10 per cent stock), which will have to be approved by shareholders at the annual general assembly, the date of which is not furnished.

Lagoona Mall is unveiling a range of new shops and eateries in the February-April period in a bid to bring the latest high-end fashion, more restaurant brands and fresh cuisines to Doha. The new fashion agships include Tommy Hilger, the US lifestyle brand, offering designer clothes for men, women and children, and denim collections exclusive to Lagoona.

Qatar Petroleum (QP) has launched a new project that will look into the impact of vehicle tyres on road accidents in Qatar. QPs Research & Technology Department has partnered with Texas A&M University at Qatar (TAMUQ), Williams Advanced Engineering and Shell for the project that would look into the effect of vehicle tyres on road accidents in Qatar and eventually educate vehicle users on the importance of proper tyre safety.

04

AL MEERA OPENS FIRST GEANT HYPERMARKET

APPOINTMENTS

INVESTMENTS

01

MURAD RETURNS AS CEO OF AHLIBANK

01

$12BN FUND EYES ASSETS OVERSEAS

Qatar will create a new $12bn investment rm, backed by blue-chip assets from its sovereign wealth fund, and list it on the local stock exchange, its main institutional backer said. Qatar Holding - the investment arm of the Qatari sovereign fund - said the new rm will invest in assets around the world. You name it - shares, bonds, real estate, private equity. We will look at every sector in every country around the world, Hussain al-Abdullah, Qatar Holdings vice-chairman, said at a news conference.

Ahlibank has appointed Salah Murad as its chief executive ofcer. The appointment of Murad, a veteran banker, signals a renewed focus toward continuous delivery of outstanding shareholder value, the bank said. Murad has more than 29 years of commercial banking experience in the GCC, including three years as CEO of Ahlibank in Qatar. Al Meera Consumer Goods Company announced the opening of Qatars rst Geant Hypermarket at Hyatt Plaza in Doha. The decision to open the Doha store follows an agreement signed between Al Meera Consumer Goods Company and French retailer Casino.

02

HSBC APPOINTS KENNY CHIEF OPERATING OFFICER

02

QATAR PLANS $22BN WATER AND POWER INVESTMENTS

The countrys water and electricity sectors are expected to gain signicantly from investments worth about $22bn that the authorities have planned for the next eight years, in particular in the ve-year period between now and 2018, according to a senior Qatar General Electricity and Water Corporation (Kahramaa) ofcial. This includes the setting up of 140 new electricity substations and adding new water lines of more than 810km across the country.

05

MEMAC OGILVY FORMALLY INAUGURATES DOHA OFFICE

HSBC has appointed Justin Kenny as chief operating ofcer (COO) in Qatar. Kenny undertakes his new position with immediate effect, following his role as the chief operating ofcer for HSBC Global Payments and Cash Management Europe.

Marketing communication agency Memac Ogilvy formally inaugurated its Qatar ofce in Dohas West Bay business district. Headed by Samer Abboud, the Qatar facility is the 15th Memac Ogilvy ofce in the Mena region. Starting from one ofce in 1984 in Bahrain, they have grown to become not only one of the biggest agencies in the Mena region, but also the most creative agency in the Arab world.

03

STANCHART APPOINTS MENA HEAD FOR M&A

Standard Chartered has appointed Tom Emmet as head of mergers and acquisitions (M&A) for the Middle East and North Africa region. Emmet replaces Apporva Shah who has decided to leave the bank to pursue other career opportunities. Emmet will be based at the banks regional headquarters at the Dubai International Financial Centre (DIFC).

Business Cover Story

MALLS MUSCLE

THEIR WAY IN
There are many indications that mall culture is here to stay and retailing will never be the same again, particularly in Qatar and the rest of the GCC region. The traditional souqs and standalone stores will have to settle for crumbs from the power retailers table because that is where the cash counters are ringing, bargain offers are announced and transactions worth millions are adding up to phenomenal gures on the balance sheet.
Every retailer would like to have a piece of this action as Qatar goes shopping for perishables, non-perishables, essentials, not-so essentials, readymade clothes, accessories and trendy electronic gadgetry. The unwritten rule is that if an item is not available in any self-respecting mall it is not worth talking business about. Both international travellers and local residents alike never stop to wonder what a mall has to offer. They expect it to offer everything from sophisticated smartphones, laptops and tablets to perfumes and undergarments. Magnicent malls are fast becoming the pride of Qatars cities and emerging townships. They are the much discussed landmarks by new motorists seeking directions to their destination and new migrants setting up home in town alike. Right from the quintessential mobile SIM, what you need to get started and inform others of your arrival in town, to the expatriates rst remittance home the mall has it all under one roof. It is difcult to skim through a newspaper without chancing upon an advertisement placed by one of these power retailers announcing the killer prices on offer at their outlets. Many of them regularly publish these tabloid sized booklets to inform potential shoppers about the latest goodies on offer, many of which have you reaching for your calculator. Thats not all. There are the tempting rafe gifts for the big spenders. Even the ones who have lled out these coupons for years without winning as much as paper clip, dont

HYPERMARKETS AND MALLS ARE CHANGING THE WAY PEOPLE SHOP IN QATAR AND NEWER PLAYERS ARE ENTERING THE MARKET AS THE REGIONS RETAIL INDUSTRY IS FORECAST TO REACH OVER $1 TRILLION BY 2014, WRITES SAMI SAID ALI

10

Extreme attention to detail is now being paid to interior design in grocery retailing, which caters to the basic needs of society, to add value and make it appealing for customers.

complain because who cares, they would have spent those riyals any way and all it cost them was a few extra minutes lling out those details during each visit. Malls are consumer playgrounds where even the high and mighty soon become part of the crowd and the lonesome can just step back and watch others shop and send gures soaring on the cash register. In recent years Qatar has rmly established itself as one of the markets to be in, both for high-end and mid-market global retailers, thanks to increased tourism, population growth and government stimulus. FIFA World Cup may be almost a decade away but big retailers are already out to have a ball with their own pet strategies to dribble past the competition and grab a major slice of the retail pie. The latest retail giant to join the market is French supermarket chain Gant which opened at Hyatt Plaza on February 24, the result of an agreement signed between Al Meera Holding Company and French retailer Casino to develop a network of hypermarkets and supermarkets under the Gant banner in the Middle East. By the time this magazine is out the worlds largest furniture retailer Ikeas rst store would have opened for business at Doha Festival City. Ikea Qatar expects 1.6mn visitors in its rst year of operations. The store is the newest of Ikeas 341 stores in 41 countries. Ikeas interest in Qatar is not surprising because Carrefour, the second largest retail group in the world in terms of revenue, was among the earliest international retailers to establish a presence in Qatar. To date they have four stores in the country. From the looks of it, with its fast-growing population, spending habits, huge per capita income Qatar is well-poised to become one of the retail destinations of the region in

11

the future. MICE, sports and other types of tourism will only hasten the process facilitated by a culture that is open to business and willing to share the dividends of a liberal and growing economy. Minimal political and nancial risk is another attractive feature of the Qatari economy. The average Qatari household reportedly spends around 11 per cent (QR4,583) of its monthly income on food namely 95.3 kg of meat, 25 litres of milk, ve packs of eggs, around 84 kg of fruits and more than 60 kg of vegetables. Spending on food has increased signicantly over the decade since 2001. Similarly the last American Express Middle East Luxury Spending Tracker survey found residents of Qatar to be the biggest buyers of luxury goods, spending up to QR18,200 a month on luxury goods. Apart from cars, the favoured purchases included high-end electronics goods and personal accessories. It was in the latter half of the last decade that store development managers took notice of this blue sky market

with immense business potential irrespective of the new stores location. A successful Qatari business development manager compared the business potential in Qatar to a watermelon no matter how you slice it, you always get a juicy piece. The growing GDP, substantial government spending on infrastructure and healthcare, low fuel prices and low or zero tax, free up a substantial portion of individuals income for consumption of food and non-food items has fuelled retail growth.

open up. Depending on the income bracket into which they fall, the family can select the mall -- a high-end one dotted by luxury goods stores and upmarket cafes or one catering to all and sundry. Malls have become the trendsetters for Qatars 1.9 million population comprising nationals and expatriates. The shopping centre concept dominates, obliterating the idea of standalone stores selling goods and services. This makes sense because in bustling streets and bazaars car parking spaces are hard to come by, whereas all malls big and small have demarcated parking spaces for customers. Along with grocery retails, there are pharmacies, refreshment hangouts and money exchanges, basically catering the basic needs of the society to its optimum. The branded coffee shops have, in the recent years, become an ideal place to discuss business over a steaming cup away from ofce, particularly because the staff usually dont make their guests rush. It is not uncommon for business partnership deals to be countersigned during these relaxed coffee breaks.

One-stop shop
In todays fast-paced world with both men and women working and ever-growing demand, weekend shopping is not just a chore it is family time. Most malls cleverly reinvented themselves as an ideal destination offering entertainment, recreation and relaxation as add-ons. For a family having run out of ideas to spend the weekend, a casual visit to the mall closest to their home could enliven their dull mood. Once there ample avenues to spend their time and money would

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One of the clear trends that is emerging in the region is power retailers entry into private-label retailing as they focus on prot growth. Private-label products are those that retailers market as their own brands.

as the country is much smaller. This also helps them in offering rock-bottom prices for the products on their racks. Extreme attention to detail is now being paid to interior design in grocery retailing, which caters to the basic needs of society, to add value and make it appealing for customers. For hypermarkets like LuLu, Carrefour and Al Meera that sell fresh and baked food products along with groceries, such visual differentiations help consumers locate products and also provides them unique shopping experiences. Food retailers, unlike other retailers, have the additional task of maintaining the freshness and purity of their products. Supermarkets and hypermarkets are increasingly offering takeaway and fresh products in dedicated zones within their stores, along with kiosks offering menus for the entire week targeted at people who do not have the time to cook. In addition to visual merchandising, lighting, too, plays a major role in enhancing the visual appeal of the products. Design and convenience are prime emotional elements that the smaller supermarkets are not able to match.

Trends
The big format malls have overtaken the small shops in town, or better said their roles are better dened now. Bulk purchases like the ones at the beginning of the month are done at leisure at the all-in-one convenient stores when one has a couple of free hours at hand, but the regular small buys are made at the neighbourhood shops while the pan is still on the stove. Analysts say the Middle East markets are currently the safest bet for retailers, with regional economies showing resilience and surging ahead to offer a highly positive retail climate for both local and foreign players. The regions retail industry is forecast to grow at a CAGR of about 10 per cent through 2011-2014 to reach over $1 trillion by 2014. One of the clear trends that is emerging in the region is power retailers entry into private-label retailing as they focus on prot growth. Private-label products are those that retailers market as their own brands like the Carrefour store selling Carrefour whole grain biscuits competing with established branded biscuits of the same kind like Digestive. The development of private labels benets both grocery retailers as well as their shoppers. Retailers increase gross margins without increasing prices, since they do not have to share the prots on sales of private-label items with manufacturers. Retailers are also able to promote themselves as value chains without reducing prices on branded products.

Visual treat
Today, shopping mall integration is becoming more important. Open space and sustainable design for shopping malls are the rising trends throughout the world. Even the existing shopping malls are opening, integrating and continually updating themselves to compete with the emerging shopping places. Visual merchandising, that is shelf and other display methods employed to boost sales, seems to be working well within the region. Retailers are nding new ways to reduce labour and transportation costs by minimising the distance and time required. Retailers in Qatar nd it easy in managing logistics

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The concept of group-buying is also becoming increasingly popular in Qatar, and it is one of the major forces behind the growth of retail sales in the region. Often word-of-mouth and peer reection are cited along with industry trends, particularly in retailing of electronics. The increasing pricesensitivity among consumers in Qatar can be gauged from a growing trend in favour of smaller value retailers like Safari Mall. The efcient use of advertising platforms has made shopping a highly convenient experience and shoppers are also drawn to the much-touted attractive deals. Retailers race to trace consumers at every stage of the purchase cycle. Retail marketing has aggressively turned into a montage of mass-media branding, tactics for driving store trafc, in-store experience, and loyalty programmes. Promotional offers are advertised in local newspapers, radio, TV and direct email to attract consumers to a store. In-store merchandising programmes are also enhancing the customer experience at the point of sale and make the cash register ring. Cashback and loyalty are increasingly becoming a driving factor in consumer purchase. The rst retail branded credit card was introduced a year ago by LuLu, which joined hands with Doha Bank to create long-term preference and repeat visits.

workforce and its inability to hire nationals poses a human resource challenge for the retail industry. Food retail sales account for a signicant portion of the overall sales volume generated by Qatars retail industry, therefore disruption in food supply could have a direct impact on retail sales in the region. The sector presents attractive growth opportunities but in order to capitalise on them retailers need to constantly look at managing their businesses efciently and come up with ways to innovate. Competing with online shopping is also a slowly yet solidly emerging trend. In a tech-savvy society like Qatar, digital marketing and e-commerce are being accommodated in the larger picture. Hence, understanding and rening marketing to make it more efcient is a predominantly vexing task. In a country that is catering to an international audience, customer satisfaction needs to be addressed in the most appropriate manner.

Future
With a steadily growing population, most of them young and rapid urbanisation, Qatar is highly attractive for retailers of both essential and discretionary products. With more malls expected in the near future, Qatar is poised to give the retail segment higher returns on investment. Multinational retail giants foray into the Qatari market is a positive trend that will compel smaller retailers to get their act together and raise overall standards to retain market share. As a result the customer can be assured of a better deal resulting from loyalty programmes, effective pricing strategy and valueadded products. The availability of strong and experienced potential franchise partners, increased consumer condence and proactive measures taken by the government to ensure social harmony, are all factors that will act as a catalyst to put Qatar rmly on the global retail map

Challenges
Given the fact that Qatars retail industry has ourished, to a substantial degree, on the promising spending patterns and lifestyles of its inhabitants and a booming MICE industry, socio-political stability is a very important factor for the sector. Retail rentals are on their way up in Qatars toptier malls, making it difcult for the retailer to make ends meet. Rental expenses are expected to increase further and squeeze the margins of retailers. The retail industry is also highly dependent on the expatriate workforce. High attrition levels among the expatriate

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Business Executive Education

RESEARCH AND STAY AHEAD OF THE GAME

HEC PARIS IN QATAR RELIES ON RESEARCH TO GIVE ITS FACULTY THE MUCH-NEEDED EDGE IN THEIR EXECUTIVE EDUCATION PROGRAMMES
Reaching the top and staying at the top are two very different things, however. What does it take to remain the best? An ongoing commitment to staying abreast of the latest developments in the grand sphere that makes up the business world. In this regard, were talking about research. Research that gives the HEC Paris faculty the means to stay ahead of the game, to enable its
participants to be pioneers in whatever they do, and give the country an invaluable boost in transforming itself into a knowledge-based economy in line with the Qatar National Vision 2030. HEC Paris in Qatar wants to be known for its excellence in provision of Executive Education. Research is an adjunct to this and while it will always

Tomasz Obloj
HEC Paris Faculty Member

Tomasz Obloj joined HEC Paris in September 2011. He obtained a PhD and Masters from INSEAD business school after undertaking most of his studies in Warsaw, Poland, where he also lectured. Tomasz is the recipient of the Wiley Blackwell Award, which is given to the best dissertation by the Business Policy and Strategy Division of the Academy of Management.

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be known primarily for the former, the importance of the latter is highlighted above. One particular research dissertation recently completed by HEC Paris faculty is that of Tomasz Obloj, entitled: Managerial incentives: Life-cycles and the inuence of learning processes. Obloj who joined HEC Paris in September 2011 and his colleague Metin Sengul were interested in how individual and organisational learning processes can inuence the evolution of the division of value between different economic actors. Each rational economic actor seeks to appropriate a higher share of the value created in the exchange. Employees would like their employers to increase their salaries, suppliers seek higher prices and alliance partners would like better dividends, explained Obloj. In long-term relationships such as employment or strategic alliances, the division of value is determined by

contractual agreements that secure the continuity of the relationship and joint value creation. Within companies, the corresponding arrangement is the structure of organisational incentives, which can be seen as an explicit contract specifying the division of value between a company and its employees. As part of my dissertation, I began with a theoretical idea based on the observation that companies change incentive programmes on average every one to two years, says Obloj. This is a relatively high frequency given the costs, worries, and uncertainty that result from any kind of organisational change.

primary loans) at each of the banks outlets and the value appropriation (the sum of the monthly bonuses earned by the employees) grew at a decreasing rate as employees gained experience under the new reward system. In parallel, the banks share (the percentage of value created by the outlets retained by the bank) increased at rst, before reaching a plateau and then decreasing continuously, indicating that the ability of the rewards to induce the intended results deteriorated over time. As Obloj explains: Every incentive system is likely to experience a lifecycle: it is more and more efcient as time progresses before reaching a tipping point, after which it becomes less and less so until the company changes it, as is the case for a product or particular technology at the beginning, the technology works increasingly well until it is replaced by a new technology that is even more efcient.

The life-cycle of incentive measures

By analysing data gathered from a Polish commercial bank, Obloj and Sengul were able to demonstrate the existence of an incentive-specic lifecycle. They observed that the creation of value (the sales revenue from

Methodology
The researchers analysed data from a Polish commercial bank over a 13-month period from the introduction of a reward system until its replacement by a new system. Their aim was to show the existence of an incentive life-cycle, to explore the underlying micro-mechanisms and to provide strong quantitative and qualitative evidence of the presence of productive and adverse learning in bank outlets.

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There are aws in all incentive programmes, which employees exploit and that take time to be identied. The existence of these cycles, identied in the article by Obloj and Sengul examines how employees and organisations learn to respond to a given set of incentives. This means that we can apply our theory to most organisations, not just banks or similar types of company, added Obloj.

years of service an individual has, the more quickly he or she comes to understand the workings of the incentive regime. We wondered whether learning was restricted to a particular incentive programme and whether previous experience could be transferred from one organisation to another or across different regimes. And, in fact, both are easily applied in new contexts.

Examples of the adverse effects of incentives

This is the rst empirical study to show that learning processes inuence the evolution of the division of value between economic actors. The results can be positive or negative, with the researchers demonstrating the presence of both so-called productive learning (i.e. learning that produces the desired effects) and adverse learning (learning that has undesirable results). As I have pointed out, all incentive programmes have inherent aws, which employees exploit. It can take time for employers to identify said exploitation. The best known example occurred at the US-based multinational company Lincoln Electric in the 1980s, when, to encourage employees to work more quickly, they were given a bonus according to how many times they hit the keys on their typewriters. But employees then started to strike their keyboards at random during their lunch breaks... The 1990s were also littered with similar examples in the eld of stock options: many CEOs took to falsifying their accounts to articially inate share values before making money for themselves by selling their own shares in the short term (instead of taking the correct decisions that would have raised long-term share value). According to Obloj, employees with prior experience curtail the effects of the incentive lifecycle: the more

These assertions were met with scepticism by some of Kerviels former colleagues, as well as by some members of the news media. Kerviel had told investigators that his trading behaviour was widespread at the company and that getting a prot made the hierarchy turn a blind eye to what he claimed was endemic unauthorised trading. Kerviel published a book in 2010, in which he alleged that his superiors knew of his trading activities, and that the practice was very common.

The Kerviel Affair shows us that companies have to change their incentive regimes on a frequent basis. Limiting their application over time is an efcient way of preventing employees from taking advantage of the schemes at the expense of the company.

Applications in the workplace

The Kerviel Affair shows us that companies have to change their incentive regimes on a frequent basis. Limiting their application over time is an efcient way of preventing employees from taking advantage of the schemes at the expense of the company. Companies should change incentive programmes more often than is generally thought, says Obloj, but the optimal timing depends, of course, on each individual company, he concludes. What the work of Obloj and Sengul demonstrate goes merely beyond their ndings that companies need to look at a model of staff incentive programmes which change with greater frequency, show greater exibility and also remove the potential for fraud. Their ndings enable HEC Paris faculty to provide new, relevant and coherent information to its course participants. Thus it is shown that HEC Paris suite of Executive Education courses is one in a constant state of evolution, and right on the cutting edge of business knowledge. The question in the headline is how to stay ahead of the game. HEC Paris, through the efforts of Obloj and Sengul has provided the answer

Obloj gives the following example: The traders who caused huge losses at banks such as Socit Gnrale in France and UBS in London and Geneva by taking too many risks had, generally speaking, previously worked in the back ofce. This meant they were able to accumulate experience about operational procedures and work out how to subvert them to win bonuses. With regard to the above mention of Socit Gnrale, Obloj is bringing our attention to what is known as the Kerviel Affair. Jrme Kerviel was a trader at the French bank who was convicted in 2008 for breach of trust, forgery and unauthorised use of the banks computers, resulting in losses valued at 4.9 billion (QR23.7 billion). Socit Gnrale characterised Kerviel as a rogue trader and claims Kerviel worked these trades alone and without authorisation.

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Business Labour Law

LEGAL PROVISIONS FOR SECURE RECRUITMENT AND EMPLOYMENT

ERRONEOUS PRACTICES OCCUR ONLY DUE TO NON-COMPREHENSION OF THE LEGAL SET-UP FOR THE SPONSORSHIP SYSTEM AND OTHER RELATED PROCEDURES, WRITES KAVINDA HETTIARACHCHI

LAW OF WORK
Recently the Search and Follow-up Department (SFD) of the Ministry of Interior revealed that last year it blacklisted 3,705 companies and individuals, banning them from recruiting workers as penalty for violating Law No. 4/2009 that regulates entry, exit, residence and sponsorship of expatriates in the country.
This was the outcome of a series of inspection drives carried out by SFD to book offenders of the residency law and prosecute them, thus eliminating these visas. Such visa trades clearly violate Article 15 of Law No. 04/2009 which stipulates that Visas may not be assigned or transferred to third parties in any manner whatsoever nor can it be used by third parties, whether such transfer, assignment or use is for consideration or not. Most of the people trade the employment visa with the agreement that the employee has to nd a job within three months and these candidates have a ready NOC at hand. (This 90-day period is stipulated by Article 9 of Law No.04/2009; the

the menace of absconding and illegal workers. After its most recent drive, the SFD blacklisted 1,263 individuals and banned them from bringing in workers under their personal sponsorship. The Department also banned 2,442 companies for either recruiting employees under their sponsorship without changing their status or failing to abide by the rules and regulations. Some people trade visas, resulting in many problems. There are thousands of candidates hunting for jobs while on

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sponsor shall accomplish the residency procedure and its renewal, provided that renewal shall be done within 90 days from the expiry date of the visa). Many of these alleged companies and individuals in default had employed workers who were not on their sponsorship or they had allowed workers on their sponsorship to work in some other place, in violation of the law. Article 15 of the law stipulates that no natural person or corporate person may permit expatriates, brought to the state for work, to be employed by other entities or employ any workers not sponsored by such person. Seconding, a special section in the Ministry of Interior (MoI), permits a sponsor to allow his employee to work for another party for a period not exceeding six months, renewable for a similar period. This section in the MoI

22, Law No. 04/2009 it states that the competent authority shall transfer the sponsorship of the expatriate worker to another employer under a written agreement between the new employer and the former employer, subject to the consent of the competent authority at the MoL...etc. Anyway, the consent of the sponsor is a prerequisite for transfer of sponsorship and this right has been given to the sponsor because of the obligations he has to shoulder as a laid down under the sponsorship system. This is irrespective of whether the employment contract is for a xed term or for an indenite duration. It is, however, worth mentioning that the right of the sponsor in granting the sponsored employee an NOC is not an absolute right. It is limited and linked to the non-existence of lawsuits between the parties. The sponsorship law points out that the Minister of the Interior or

prescribed under the Labour Law, can be transferred to another employer. Also expatriates need to understand that there are several instances in which their applications for a transfer of sponsorship will not be entertained. These includes times when the contract period has ended and has not been renewed, that is end of the work period for which the employee was recruited. In such cases the expatriate worker has to compulsorily leave Qatar, unless he is able to get the consent of the sponsor to renew the contract or transfer it to another party for employment. If such consent is not obtained, the expatriate worker has to leave the country to avoid being considered a violator of Qatari laws and running the risk of possible detention in a deportation centre as well as becoming liable to pay nes. Escape from the workplace or

A person who harbours an absconding worker or employs him or her is liable for imprisonment and payment of a ne ranging from QR20,000 to QR100,000. The Search and Follow-up Department plans to intensify inspection campaigns soon and will take legal action against the violating workers as well as against those who employ these workers in violation of the law.

is permitted to grant you permission to work for some period for another party in an area other than your basic work, provided you obtain written permission for the same from your sponsor. In all the above cases, permission must be obtained from the Ministry of Labour (MoL) for the groups pliant to labour law clauses. Making a note of the frequently mentioned subject of No Objection Letter or the sponsorship transfer procedure as stipulated under Article

his deputy can transfer the sponsorship of a foreign worker temporarily in the event of litigation between the sponsor and the foreign worker. The Minister or his deputy can even approve the transfer of sponsorship of a foreign worker to another employer in the event of proven abuse by the sponsor or if the public interest requires so. For the same reasons, at the request of the worker and subject to approval by the Ministry of Labour, the sponsorship of the worker, as

accommodation and working for others (someone other than the sponsor) could result in a court ruling that the expatriate worker be deported from Qatar or even his being subject to an administrative decision in favour of deportation if his presence is construed as a disturbance to general order. Also voluntary resignation or refraining from doing work without any justiable reason would come under this category. Some of the erring companies and individuals employ runaway workers.

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The SFD constantly urges all citizens and expatriates to strictly avoid dealing with absconding and runaway workers or employing them in any manner. SFD also requests the public to co-operate with the countrys agencies concerned by informing them about such violators. Absconding workers face up to three years in jail and a ne of QR50,000, but all those who have been detained have been referred to a special court that could order their immediate deportation or recommend a change of sponsorship. Previously, the MoI stated that a person who harbours an absconding worker or employs him or her is liable for imprisonment and payment of a ne ranging from QR20,000 to QR100,000. SFD plans to intensify inspection campaigns soon and will take legal action against the violating workers as well as against those who employ these workers in violation of the law. Working within the framework of promoting human rights and supporting work relationship between the sponsor and his sponsored employee as per the law, the MoI communicated with workers through the Human Rights Department of the Ministry for solving their problems. As a result, the Ministry of Interior transferred the sponsorship of 260 expatriate employees last year. Of these 211 were cases of temporary sponsorship change and the sponsorships of the remaining 49 employees, who were victims of abuse by their employers, were changed permanently after studying and verifying the problems between both parties. Several companies also refused to pay to send their workers back to their home country after their tenure of employment had ended, prompting some expat workers to stay back and work in Qatar without proper paperwork, the MoI said in a statement. Some employers didnt provide residence permit to their employees or renew it on time as prescribed by the law. Some companies also refused to pay the deportation expenses of their sponsored workers without proper justication and this led to an increase in the number of absconding and runaway workers. This is a clear

violation of Article 24 of the above Law where is says: Repatriate the sponsored person upon the expiry or cancellation of the residence permit or upon deportation order. If the expatriate worker refuses to leave, the sponsor should notify the competent authority. The sponsor would not be liable to pay the deportation expenses of the sponsored expatriate worker, who is no longer governed by the Labour Law, after 30 days from the date the sponsor reports the expatriate workers escape. All these erroneous practices occur only due to non-comprehension of the legal set-up of the sponsorship system and other related procedures, about which from time to time government entities have to take measures to educate the public. Many low-salaried employees come to Qatar without knowing many of these conditionalities and fall into the trap of many visa traders. Regulating the recruitment procedure and the immigration set-up would ease and minimise these incidents. Also, as per media reports recently a committee, consisting of

representatives from the Ministries of Interior, Labour and Justice, the General Secretariat of Urban Planning and the Chamber of Commerce and Industry, is reviewing the sponsorship system to make it more in line with Qatars Vision 2030. This review was in light of the experiences gained from the implementation of the strategic veyear plan for the period 2011-2016 and to assess the needs for the next phase of development. Under the present system, there is the lure of employing expatriates in a cost-effective manner but the fallout of this arrangement is diminishing job opportunities for nationals and slowing down of the use of state-of-the-art technology besides a drop in productivity. Another point that has emerged from the strategic planning is that under the present sponsorship system, the expatriate workforce is bound by a given framework of employment. They do not have the option of taking up jobs that are in great demand in the market and thereby help in building a knowledgebased economy. The committee will examine these points closely, the report said

22

Business Travel & Tourism

Overcoming online business challenges

Experts have suggested that customer retention and revenue optimisation are fundamental to successful online travel businesses
The fast-paced technological landscape and shifting consumer trends continue to throw up challenges for the online travel sector. Consequently, the need for online travel agents (OTAs) to put in place a competitive strategy and offer the best prices and service in order to retain customers has never been greater, according to Sameer Gunaseelan, IT Manager, Omeir Bin Youssef Group.
Gunaseelans comments came during an e-consulting seminar organised by Amadeus Gulf titled Success in Online Travel. The event that was held earlier this year in Dubai and Abu Dhabi focused on the fast-expanding online travel market and the importance for travel agents to make effective use of the opportunities available online. The workshop brought together experts in the online travel segment who examined crucial subjects such as actual trends in online travel, the importance of an online presence, measuring costs, increasing revenue and effective advertising. Highlighting challenges faced by online business in the region and ways in which OTAs can increase efciency, Gunaseelan added: Setting up an online business in a region where consumers lack the condence to make payments online is extremely challenging. In this scenario, agents must ensure they have a tightly-knit customer retention strategy. Through offering a straightforward buying experience and a fast, simple and user-

The workshop brought together experts in the online travel segment who examined crucial subjects such as actual trends in online travel, the importance of an online presence, measuring costs, increasing revenue and effective advertising.

Participants at the e-consulting seminar titled Success in Online Travel organised by Amadeus Gulf for travel agents in Dubai and Abu Dhabi.

friendly interface will ensure customer satisfaction, in turn increasing the success rate of OTAs in the region. Graham Nichols, Managing Director, Amadeus Gulf, said: There is no doubt that the online travel market in the UAE is booming. In fact, according to a PhoCusWright study on online travel trends in the Middle East, gross bookings of online travel agents are expected to rise from $2.2 billion in 2012 to $3.2 billion in 2014, indicating great potential for the market. However, while it is important for travel agents to keep up with global trends, it is equally signicant for them to understand how to effectively utilise the online platform. Very often, agents fail to consider whether their business is yielding a high return on investment, a critical factor when expanding online. Through workshops such as these, Amadeus aims to shed light on such

key topics that would benet online travel agents and entrepreneurs in the region, in turn resulting in the advancement of the sector as a whole. A featured session titled Convert visitors into recurring customers focused on factors that are crucial to the success of an online travel business, including ways to get higher conversion rates, making yourself available to customers, optimising performance, paying attention to security and achieving loyalty through diversication. The event also hosted sessions titled Drive trafc to your site and Maximise your revenue and control your cost. The seminar was designed for travel agents of all sizes across the UAE and invited the participation of agents currently operating a travel website. The event also drew the attendance of travel operators looking to plan or expand their business online

23

Business HR Practices

UNDER TEST
R. RAMESH TAKES A LOOK AT THE FIERY DEBATE IN HR CIRCLES ABOUT THE FLIP SIDE OF STAYING WITH THE SAME EMPLOYER FOR TOO LONG
Just a decade or two ago, an employee staying long years in an organisation was looked upon with pride as a matter of dignity. Colleagues considered him/ her a perfectionist or a mentor. Even the heads of organisations looked at such employees as a versatile lot.
But times change and so do we with time. Globally competitive organisations have pitched in and there is a growing feeling that long years in the same ofce apparently indicate non-marketable material with no abstract ideologies, as a human resource (HR) expert puts it. The employee may have remarkable skills and even delivery par excellence, but a stigma is attached to him/her. Theres a ery debate in HR circles about the ip side of staying with the same employer for too long. Does it ruin chances of re-employment in case of dire circumstances? What does an employee do if, say after working for 20 years in the same company, s/he has to nd a new job and discovers that the world has moved ahead and performing efciently despite massive experience is a huge challenge? There could also be a mental block in adjusting to new work conditions.

LOYALTY
Sameera Fernandes, Group Corporate Communications Manager, Al Ghurair Investment, however, strongly bats for employees long-term association with same employer. Organisations can seek immense benets, not just in productivity, but also in harnessing positive change and strong values that resonate a thriving corporate culture within the group. Besides considerable savings on recruitment and training, focus on innovation, growth, mentoring and expertise are promising factors for retaining long-tenured employees. The mentoring role also, in turn, establishes these employees as leaders, she points out. Such long-tenured employees invest a lot of time and attention in building constructive working relationships which raise the organisations performance levels to a considerable extent. Adapting to changing dynamics of any work culture presents both opportunities and challenges to any new employee. But years of hard word, increased condence levels, dedication and loyalty always seem to accentuate the credentials of employees to be noted as experts who are most trusted and reliable, argues Sameera.

Particularly in the oil and gas sector in the Middle East, much emphasis is given to stability of jobs. At the same time, when professionals are positioned in one set-up for too long a time, they become obsolete because they fail to prune their skills.

While most experts agree that longterm employees are an invaluable asset to any organisation, there examples galore of many Middle Eastern companies embracing the hire and re culture. Some HR experts caution that locked-up employees involve the danger of inbreeding by stopping infusion of new blood into an organisation.

24

Nevertheless, spending long years in an organisation can make one non-adaptive to changes. These types of people wait until they are shown the door. To such employees, UAE-based HR expert Krishna Raj suggests, Dont wait for this happen to you. Be alert, proactive, sharpen skills and inner potential from time to time and take advantage of changing situations in your job environment. When this happens to your colleague who has been red, dont lose hope. The rst lesson is not to panic. Find out ways to overcome this situation. For a newcomer in an organisation to progressively perform, Raj has this advice: Look for simple, short-term goals, be sure you achieve them, leave the complexities at strategic level later and give yourself that leverage to be used by your boss. He continues, That blue eyed boy feeling is not going to last forever than it is perceived to be, hence quickly build on your efforts and adapt to new scenario in a minimum lead time. Be sure you raise the bar each time and this will give you tremendous condence.

Sharpen your skills doubly than you did in your earlier organisation to win accolades from your management, but one warningDont just do things to impress the boss or the management. When this is exposed you are in danger. Do things that will eventually pay you off in the long run. According to Raj, in the recent past, particularly in the Gulf region, several professionals with an impressive track record changed to less challenging jobs, not merely for job security, but loss of self-esteem. Particularly in the oil and gas sector in the Middle East, much emphasis is given to stability of jobs. At the same time, when professionals are positioned in one set-up for too long a time, they become obsolete because they fail to prune their skills. So when time comes for a change, they succumb to so-called unknown fear, or new challenges expected of them by their new hirers, avers Raj. Several MNCs in the Gulf region boast that they have employees who have been with them for long, but this doesnt make the organisation any

better, insists Raj. A mix of talent is all that companies need though short-term deliverance is the order of the day in the Gulf environment. Policies adopted by companies have a direct impact on employer-employee relations. Employee Retention in the MENA Workplace, a poll recently conducted by job site Bayt.com revealed that a majority of employees stay no longer than ve years in a job before moving on, while more than half claimed they would like to leave their jobs immediately. A whopping 75.9 per cent of the polls respondents believed that the turnover rate in their companies was very high or moderately high. In terms of the driving forces behind changing jobs, fear of being red was one of the biggest issues, according to 44.7 per cent of respondents. Not being paid enough was also a main motivator for resigning, with 45.2 per cent of respondents indicating this insecurity as their primary reason for changing jobs. With the results of our poll showing that retention levels are now lower than before companies looking to

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WHAT IS YOUR

NEXT MOVE

hold onto their employees should consider introducing more creative and sophisticated compensation and benets structures to encourage them to stay, according to Suhail Masri, VP of Sales, Bayt.com. Separately, an Employee Motivation in the MENA survey conducted by Bayt.com and YouGov, a research and consulting organisation, revealed that employees in Qatar considered a good work-life balance to be important for the levels of motivation. While 63 per cent of Qatar respondents claimed that their company supported them to achieve this, 69 per cent stated that they were actively considering leaving their current job. On a day-to-day basis, six out of 10 employees in Qatar (62 per cent) feel that they are either highly motivated (32 per cent) or motivated (30 per cent) by the work that they do. Interestingly, three-quarters (78 per cent) of Qatar respondents believe that a good work-life balance is a very important source of motivation.

The problem is that when one works for a long period with the same organisation, he or she tends to develop a comfort zone and thats a mental block. The best way one could overcome this situation is by keeping pace with the developments in the industry, asserts P. Ravi, Director, marketing, Expo Centre Sharjah. According to him, organisations value such employees and place a lot of trust in them. Even while managements change, it does not affect long-term employees in most cases as they have a proven track record with the organisation. K. Ganesh, Finance & HR incharge, Telematics Networking & Communications, contends that it will not be a hurdle for a tenured staff to move on with another employer provided the person is highly motivated, constantly trained/updated in new skills with the ever-changing market conditions in order to face new assignments.

He insists that one can only overcome fear of change by testing the waters before she/he jumps into the open market. It is advised to do a market study and understand the recent trends which will help this person do a GAP analysis. By doing this, one can understand what has to be done to face the external market and if required equip with certications, training programmes and attend workshops which will give that extra edge. The other way, according to Ganesh, is for the employee to speak to experts who can help in analysing skill set and offer the right advice to make a smart move. The best option for an employee, sums up Raj, would be to remain receptive to changes and build a capacity to adapt to varying environment with ease. Believe in yourself and enjoy your job and be prepared to take the worst as it comes

26

Business Profile

DIVERSIFIED PUBLIC SHAREHOLDING FIRM

SIILs new ofce

SALAM INTERNATIONAL INVESTMENT LIMITED PURSUES A HIGHLY FOCUSED APPROACH OF ESTABLISHING, INCORPORATING, ACQUIRING AND OWNING ENTERPRISES IN THE GCC AND MENA REGION

2012
In 2012, SIIL celebrated its 60th year of success. The Salam legacy began when the late Abdul Salam Mohammed Abu Issa developed his passion for photography and a talent for capturing the essence of Qatars landscape, as well as that of its people. His spirit led him to establish Salam Studio, Qatars rst studio and lm processing laboratory in 1952, which consequently grew into a large business conglomerate across the Middle East region. Today, the illustrious legacy that Abdul Salam Mohammed Abu Issa created, lives on in the value that SIIL and over 35 of its subsidiary organisations, help to deliver to Qatar and the Middle East region.

SIIL WAS THE FIRST FAMILY-OWNED BUSINESS IN THE MIDDLE EAST TO BE TRANSFORMED INTO A PUBLICLY LISTED ENTERPRISE
Salam International Investment Limited (SIIL) is a listed Qatari public shareholding company. SIIL is a leading conglomerate owning and managing over 35 business units in four sectors: Contracting, Industry and Energy, Technology and Retail, Distribution and Hospitality as well as Salam Bounian, SIILs real estate arm. SIILs operations are spread across Qatar, the United Arab Emirates, Palestine, Saudi Arabia, Oman, Bahrain, Jordan and Lebanon. SIIL is currently focusing on expansions in the pan-Arab area.
SIIL continuously seeks and nurtures alliances with reputable companies and individual investors with a view to become one of the most successful diversied public-shareholding companies in the Middle East, an inspiring example for regional family groups. SIIL holds the distinction of being the rst family-owned business in the Middle East to have undertaken a massive transformation initiative and reinvent itself as a public shareholding company. It is the rst company of its kind to be listed on the Doha Stock Exchange. SIIL actively seeks and nurtures alliances with reputable companies with a vision to become one of the most successful diversied public-shareholding companies in the Middle East, an inspiring example for regional family groups. Hence, under the leadership of Mr Issa AbdulSalam Abu Issa, who is Chairman of the Board and CEO of SIIL, the company underwent this historical transformation, which was engineered in partnership with some of the worlds leading consultants.

27

CORPORATE SOCIAL RESPONSIBILITY

SIIL has initiated measures to adopt corporate social responsibility in four main areas:

Community: SIIL reiterates its commitment to living out its vision to emerge as a company that preserves tradition and technology, whilst maintaining values and a modern outlook as it strives to enhance both the economy and community with the aim of moving Qatar to greater heights. Business: Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business. Social responsibility is a guiding principle for every decision made and in every area of business. Education: This CSR initiative supports learning experiences for students at business school and law school, as well as other educational institutions, that deepen understanding of new business practices and partnerships. Sports: SIIL supports a number of community-based sporting activities, ranging from sponsorship of local teams, to broadcasting competitions and supporting youth participation and skills development. The Gate, hosted in January 2013 was a fencing tournament in which 45 countries participated.

Mr. Issa AbdulSalam

Abu Issa, Chairman & CEO, SIIL

Our 60-year heritage has given us a strong foundation and a wealth of experience to draw from. We have harnessed the strength of six decades of business acumen to build one of Qatars most successful conglomerates. Today, we own and operate over 30 business spread across four dynamic sectors. Our background and familiarity with Middle Eastern markets positions us well to build on the growth dynamics of the region. Combining our extensive local knowledge with international best practice management disciplines is something we have always been unwaveringly committed to.

SIIL is unequivocally supportive of Qatars National Vision 2030 and our growth and expansion plans actively take on board the ambitions of this nation. An entrepreneurial ambition lies at the heart of our success and it has enhanced and fuelled our passion for growth. This has earned us accolades over the years not just from the local business community, but also from regional entities. I believe this is a recognition of our competence in the environments and sectors we operate in. The partnerships we have built with leading global brands extend over many decades of trust and they have been strengthened by successful performances in multiple markets.

SIILs old ofce

THE GATE PROJECT

One of SIILs star class projects is The Gate. Located at the heart of West Bay Qatar, The Gate is a mixed-use development that stands side by side with the worlds best. Encased in luxury, The Gate attracts attention as a best-in-class development that has paved the way to carry Qatars retail industry and corporate ofces to the next level. Awarded as an exemplary Green building The Gate is designed as a comprehensive smart building with a more energy-efcient, effortless to maintain approach with an integrated IP backbone which allows management of the facility from a central control centre,

where lighting, air conditioning, security cameras, elevators, re & safety and communications can be maintained at the touch of a button.

SIIL FUTURE
In keeping with its growth trajectory and its investments SIIL expects 50 per cent overall growth within the next

three to ve years. As an organisation that is unwaveringly committed to innovation and better performance, SIIL expects to reach this achievement by pursuing a highly focused approach of establishing, incorporating, acquiring and owning enterprises in the GCC and MENA region

28

Business Finance

BRINGING PAYMENT INNOVATIONS TO THE MARKET

MASTERCARD OFFICIAL TELLS M.V.A KUMAR THAT CARD PENETRATION IN THE REGION IS QUITE LOW AND THERE IS GREAT POTENTIAL FOR GROWTH IN MARKETS LIKE QATAR
The origins of MasterCard, a name familiar to credit card users globally, can be traced to 1966 when a group of banks created a memberowned association that later became MasterCard. In the 1990s when electronic payments become more closely integrated into peoples lives, MasterCard capitalised on this behavioural shift by developing new technologies that improved convenience, speed and efciency.
leading insight, and globally integrated resources to deliver value to its constituents. The Executive.qa interviewed Safdar Khan, Market Manager, Qatar, Oman and Kuwait, MasterCard, to nd out what his company planned to offer the Qatar market. Excerpts follow:

Q:

Safdar Khan
Market Manager, Qatar, Oman and Kuwait, MasterCard.

It launched the Priceless ad campaign, elevating its consumer brand and differentiating the companys connection to consumers. MasterCard established its regional headquarters in Dubai in 1986 and over the years its Middle East operations have seen tremendous growth with ofces opened in Riyadh in 2000; in Cairo in 2003; in Casablanca in 2006 and in Doha in 2012. As per a new structure created in April 2012, a new global region was created: the Middle East and Africa Region (MEA), comprising of three divisions; Middle East and North Africa (MENA), Sub Saharan Africa and South Africa, clustering a total of 69 markets stretching from Afghanistan to South Africa and from Morocco to Pakistan. MasterCard Worldwide leverages a combination of expertise, industry-

MasterCard became a publicly traded company in 2006, how has this impacted your global operations?

MasterCards listing on the NYSE in 2006 marked a major milestone for MasterCard and reinforced our commitment to continued growth and building value for our customers and stockholders globally. MasterCards IPO was the largest domestic IPO of 2006 and the 12th largest domestic IPO in US history at the time. The IPO allowed MasterCard to grow our operations globally and enhance our service proposition. It also augmented the publics awareness of our brand.

Q:

Despite MasterCards global presence it was a little delayed in establishing an ofce in a fast-growing country like Qatar. Was there any particular reason for this?

30

Safdar Khan and his team seen during the opening of MasterCard ofce in Doha The MasterCard Qatar ofce was ofcially launched in January 2013. The opening followed a series of successful MasterCard product launches in the country. While we did not have a dedicated physical presence in Qatar before the launch, we did have a committed team focusing on establishing and building relationships with our valued partners in Qatar, so consumers have been able to take advantage of MasterCards payment innovations in the market for quite some time. payments by simply tapping their contactless card, key fob or cell phone on a point-of-sale terminal reader.

Q:

What is the extent of MasterCards market share globally and locally?

Q:

What are the advantages that MasterCard enjoys in comparison with the existing competition in the market?

MasterCard reports on global and regional levels only and we dont reveal country specic nancial information. For the year ended December 31, 2012, MasterCard reported net income of $2.8 billion, up 15 per cent, and earnings per diluted share of $22.04, up 18 per cent, in each case versus the year-ago period and excluding special items in both 2011 and 2012. Net revenue for full-year 2012 was $7.4 billion, an increase of 10 per cent versus 2011. Adjusted for currency, net revenue increased 13 per cent. Processed transaction growth of 25 per cent, gross dollar volume growth of 15 per cent and cross-border volume growth of 16 per cent contributed to the net revenue growth in the full-year period. Full Q4 2012 and full-year 2012 results can be found at http://newsroom. mastercard.com/press-releases/ mastercard-incorporated-reports-fourthquarter-and-full-year-2012-nancialresults.

The biggest competitor for MasterCard is cash and cheques. Card penetration in the region is quite low and there is great potential for growth in markets like Qatar. Around the world, central banks and governments are increasingly looking at electronic payments as they realise that cash transactions are actually quite inefcient. It costs a government or an economy between 50 and 150 basis points just to use cash. In other words, cash can cost a country about 1.5 per cent of its GDP. This is a substantial amount of money that could be saved if electronic payment solutions replaced cash transactions. We work closely with our customers, which include both local and international banks, to enhance the usage of payment cards in lieu of cash through targeted promotional campaigns and loyalty programmes which are aimed at educating consumers of the benets of cards over cash.

Q:

Could you gauge the impact of MasterCards presence on Qatars nancial market and offerings?

MasterCards dedicated presence in the market allows us to work even closer with our partners in Qatar, and therefore further develop our offerings in the market. This will allow consumers to access the payment solutions most suited to their needs. Recent collaborations with nancial institutions in Qatar have led to the development and offering of highly innovative payment solutions, most notably the recently rolled-out MasterCard PayPass technology which enables customers to make

Q:

How important are ATM locations for the success of a credit card?

31

While many consumers still use their debit cards to draw cash, MasterCard is working towards creating a world beyond cash. We are encouraging consumers and merchants to break the costly cycle of cash by having the infrastructure in place to pay for goods and services directly with their credit, debit or prepaid cards. ATM locations, especially for ATMs that offer a broad range of services like cash and cheque deposits and balance checks, are very important for banks as they allow them to stay connected with their customers beyond ofce hours, reduce queues at bank counters, and take the bank to the customer.

years not just in the Middle East and South East Asia, but in markets such as the UK. We will continue to collaborate with our customer nancial institutions to enhance the usage of payment cards in lieu of cash through targeted promotional campaigns and loyalty programmes aimed at educating consumers about the signicant benets of using cards over cash.

people should have an opportunity to participate in the global economy. Many of our payment innovations, such as prepaid and mobile solutions, as well as our philanthropic and consumer education programmes, bring the benets and security of electronic payments to the unbanked and underbanked.

Q:

Q:

In light of increasing identity thefts and other frauds what security solutions does MasterCard offer?

Among card users there is a fast-growing category of highincome individuals who have very sophisticated needs, how does MasterCard intend to cater to this segment?

Q:

What new nancial products and offerings do you intend to bring to Qatar?

MasterCard is working closely with customer nancial institutions and other stakeholders to develop innovative products and solutions that offer consumers meaningful benets. We provide support to our customers by assisting with the development of products and offering a wide variety of payment solutions and technologies. This ensures that we are reaching out to a diverse set of consumers across the region as a whole. Looking at existing trends, card segmentation is very popular in the Middle East as it is a very useful way to reach out to a diverse consumer base. Credit card segmentation targets different kinds of consumers in various categories and offers payment cards such as premium and afuent cards, debit cards, Shariah-compliant cards, lifestyle cards and corporate cards. We also see great potential for contactless payments like MasterCard PayPass. In fact, in 2012, Qatar National Bank (QNB) Group, Qtel, Oberthur Technologies and MasterCard announced the launch of the rst mobile Near Field Communication (NFC) payments programme in Qatar. This is also the rst programme to offer consumers a contactless PayPass sticker in the Middle East and Africa. We have also seen Islamic banking gaining tremendous popularity over the

For 40 years, MasterCard has demonstrated leadership in advancing payment card security in commerce pioneering innovative technologies and initiatives, dening industry standards and practices, and fostering collaboration among industry risk and security professionals worldwide. Many of MasterCards security innovations have become industry standards, like holograms and the tamper-evident signature panel to card validation codes. In order to continually meet the ongoing challenge of fraud, MasterCard is constantly developing new initiatives to make the future of payment transactions even more secure. We also work to educate consumers, merchants and nancial institutions on the latest technology and the responsible usage of electronic payment solutions.

MasterCard has been tracking wealth and the wealthy in the region for 26 years now. The regions large afuent segment represents a sizeable and signicant opportunity for both MasterCard and our customers, the nancial institutions. Afuent consumer values are evolving from the material to the experiential, and this drives new and different credit card needs. Today, afuent consumers want their credit card to provide recognition and exclusivity, preferential access and treatment, as well as global acceptance and exceptional service. MasterCard is responding to these evolving needs by creating and deploying new, differentiated product solutions. MasterCard Premium Cards include Titanium, Platinum, World and World Elite cards.

Q:

Q:

To which income categories do majority of your cardholders belong?

Could you identify MasterCard products in the market that make daily requirements of card users easy?

MasterCard works with customer nancial institutions and other stakeholders to develop products that cater to all market segments. Card segmentation targets different kinds of consumers in various categories and offers payment cards such as premium and afuent cards, Shariah-compliant cards, lifestyle cards and corporate cards. Financial inclusion is a key focus area for MasterCard, as we believe that all

We have all variants of Credit, Debit, Prepaid & Commercial cards available in the market, which can be used for the day-to-day activities of consumers of all segments

32

Business Real estate

AMPLE SCOPE FOR MORTGAGES TO GROW

GROWTH IN MORTGAGE LENDING HAS REMAINED VERY MODEST IN GULF COOPERATION COUNCIL COUNTRIES WHEN COMPARED WITH INTERNATIONAL STANDARDS, WRITES D MADHU
The mortgage market in Gulf Cooperation Council countries is still in its infancy. Although majority of the purchases across the regional real estate are done in cash, lower to midincome people, with long-term plans to reside in a Gulf state, shy away from buying a property due to lack of mortgage facilities.
Property experts, international and local, unanimously state that the mortgage industry is the cornerstone for a successful real estate industry. But, regardless of the magnitude of the demographic challenges, mortgage lending in the Gulf countries has to date remained very modest by international standards. In the UAE, the most advanced GCC mortgage market, though not yet mature, the mortgage industry is mere 17 per cent of the gross domestic product, says Sam Wani, General Manager, Independent Finance, a Dubaibased mortgage consultancy rm. I use that term because UAE mortgage industry is less than 17 per cent of the GDP, when it should be at least 60 per cent. Therefore it has a long growth cycle to complete before it reaches maturity. The UAE has 51 banks, sophisticated nancial markets and advanced human resources with the requisite knowledge base to make the mortgage market work. Martin Kohlhase, Vice-President, Moodys Middle East agrees that mortgage availability will give a boost to the real estate sector. In general yes. It will open up the market to resident expatriates who, despite being mid/long term always had to rent property. Now they can own. But how large is the industry? Accurate estimates are quite difcult to get, but an expert puts the market gure at $120 billion for just four GCC countries. Wani of Independent Finance puts the market size to almost over $120 billion for UAE, Kuwait, Qatar and Saudi Arabia. The market size in the UAE is estimated at $61 billion; $24 billion in Kuwait; $22 billion in Qatar and $13 billion in Saudi Arabia. Jonathan Fothergrill, Director of UAE valuations, Cluttons UAE, says: Even after rapid growth in recent years, the overall industry is still estimated to total signicantly less than $100 billion. The UAE, Kuwait, and Qatar have the most developed regional markets with mortgage loans totalling some 17, 14, and 12 per cent of their gross domestic products, respectively. However, much of this lending has been for commercial projects rather than residential real estate. By contrast, the regions most populous country, Saudi Arabia, has a modest market estimated at some 2 per cent. Asteco Property Management, in its fourth quarter 2012 report on Qatar, said that there had been a 35 per cent increase in the value and a 20 per cent increase in the volume of property sales in Doha last year compared with the previous year. Those sales were mainly recorded in the non-freehold/ usufruct areas (those designated areas where only Qatar and GCC nationals can buy land). Qatar, one of the worlds wealthiest economies, has already been voted as the second most attractive global location for infrastructure investment out of the 40 countries surveyed by EC Harris, a top global built asset consultancy. Qatar National Bank, in its 2012 economic insight report, revealed that the total budgets of all projects currently underway in the country is at $243 billion. EC Harris expects $870 billion to be invested in infrastructure projects across the Middle East and North Africa by 2030. All this spend will give a major boost to the development of the real estate sector. And to give further boost to the sector, Qatar started drafting its rst mortgage law last year. It is understood that the task is being handled by the Qatar Chamber of Commerce and Industry, which is currently working on a draft proposal meant to regulate the countrys property market. Once completely implemented, it will help grow the mortgage industry there and have subsequent benets for the real-estate industry as well, asserts Wani.

33

Jonathan Fothergrill
Director of UAE valuations, Cluttons UAE.

Martin Kohlhase
Vice-President, Moodys Middle East.

Sam Wani
General Manager, Independent Finance.

Qatar Central Bank introduced specic laws in 2011 for home loan terms, setting the maximum limit for deductions from a borrowers salary at no more than 75 per cent for Qatari nationals and 50 per cent for expatriates, with loan tenors not to exceed 20 years. Furthermore, the maximum loan cannot exceed 70 per cent of the propertys total value.
Fothergrill says that easing of mortgage nance in Qatar will greatly assist the local market as it did in the UAE. In a report issued last year, Oxford Business Group said Qatars mortgage market is still underdeveloped although the introduction of freehold property for non-nationals began in 2004. There are 18 designated areas in Qatar where expatriates can own property, three of which are on a freehold basis, and the rest on a leasehold basis. As these areas become fully developed, the market for mortgages will grow substantially, it added. A report by Saudi Arabias National Commercial Bank had put the mortgage penetration rate in the country at 12 per cent, stating that the level is well below those in developed countries such as the UK and the US, which have mortgage penetration rates of over 60 per cent. All agree that countries with mortgage laws have performed better than their peers. The UAE has the most comprehensive mortgage law among the GCC countries, Wani states, adding it has helped the mortgage industry in the country to grow. Kohlhase believes that mortgage legislation in addition to allowing the real estate market to become more liquid and transparent market also improves demand for real estate. So in general having clear laws boosts the market, he adds. So what steps need to be taken to aid an increase in mortgage penetration? Wani says the most important measure would be to create bond markets to enable investment into mortgage loans along with much-needed improvements and standardisation of banking related processes and regulations. Kohlhase asserts that there needs to be an improvement in legal transparency and regulation surrounding property sales. In addition, some form of longterm or permanent residency would encourage more private investment and condence in home ownership. Is a cap advisable or not? Qatar Central Bank introduced specic laws in 2011 for home loan terms, setting the maximum limit for deductions from a borrowers salary at no more than 75 per cent for Qatari nationals and 50 per cent for expatriates, with loan tenors not to exceed 20 years. Furthermore, the maximum loan cannot exceed 70 per cent of the propertys total value. Earlier this year, the UAE Central Bank took measures to put in place a mortgage cap for expatriates and locals. But as the decision backred, the apex bank sought consultation with banks, with their trade body proposing a loan to value (LTV) for expatriates and 80 per cent of the property value for UAE nationals for the purchase of the rst house, and 60 and 65 per cent LTV respectively for expatriates and UAE nationals for second and subsequent houses. When asked whether all GCC countries introduce mortgage caps, Kohlhase asserted that caps and limits that controlled personal leverage were crucial for a stable property and mortgage market. However, Fothergrill, says that central banks need not introduce mortgage caps and instead focus on developing a robust, transparent and efcient legal framework. Wani echoes this view. A mortgage cap in the UAE may make some sense. But other GCC markets are too small for a mortgage cap to deliver any good, he stresses

34

Leaders

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HEC Paris #2 Worldwide for Executive Education in 2012

Business Energy

HOW AN OIL & GAS COMPANY OPERATES

OIL MAJOR TOTAL HAS TO MANAGE ITS OPERATIONS WITH CONSTANT CONTROL OVER ENERGY USAGE AND ALSO OFFER ITS CUSTOMERS APPROPRIATE WAYS TO DO THE SAME

As the oil & gas industry is extremely important in Qatar, this month Total offers to give everyone a better understanding of how a major international oil & gas company is structured and operates. Lets take the example of Total, the French major, a leading international oil company and a world-class operator in gas and petrochemicals.
First of all, Total is more than an international oil & gas major, it is a multinational energy company employing 100,000 people, in 130 countries around the globe. It operates in a competitive environment and this presents many challenges, therefore

Total is perpetually changing to effectively accomplish its mission: to responsibly enable as many people as possible to access energy. Indeed, what an energy company does lies at the intersection of two of the greatest challenges the world is facing: energy supply and environmental protection. In practical terms, that means an oil major has to manage its operations with constant control over energy usage and has to offer its customers appropriate ways to do the same. Accomplishing this mission requires strengths that Total is able to demonstrate such as:

A cutting-edge technical expertise, which is internationally recognised. For example, in the areas of seismic imaging, deep offshore technology, exploration and production in conditions like extremely cold and deeply buried high-pressure/high-temperature oil and gas reservoirs. Concerning the deep offshore, defying depths and distances, extracting several different types of oil, optimising recovery factors and monitoring the operation of gigantic facilities are just some of the challenges that Total overcomes with panache, backed by its R&D teams. Pazor project (offshore Angola) provides the worlds rst demonstration by deploying completely articial lift systems

36

combining gas/liquids separation and pumping modules. This achievement marks a major step forward along the road to subsea processing. A successful track record in managing large-scale projects With the successful development of several elds like Angolas Block 17 (Girassol, Dalia, Rosa); the MohoBilondo eld (Congo) and the Akpo eld (Nigeria), Total has emerged as one of the worlds leading deep-water players. Oil owed out from the Usan eld (Nigeria) and Pazor (Angola) for the rst time in 2011. Totals developments there have set global benchmarks for large-scale project management and for the signicant technological innovation deployed. A diversied market presence For the LNG: Through its subsidiaries Total Gas & Power Ltd and Total Gas & Power North America Inc., TOTAL has entered into agreements to obtain long-term access to LNG re-gasication capacity on the three continents that are the largest consumers of natural gas : North America (the United States and Mexico), Europe (France and the United Kingdom) and Asia (India). This

diversied market presence allows the Group to access new liquefaction projects by becoming a long-term buyer of a portion of the LNG produced at the plants, thereby consolidating its LNG supply portfolio. For Fuels and Specialty Products: Total operates a global network of around 16,500 retail stations worldwide, of which 11,000 stations are in Europe. A genuine culture of partnership in all the countries where it is operating. For example in Qatar, where Total operates in all segments of the energy industry, the company is the operator of the offshore Al-Khalij on the basis of a joint-venture between QP and Total. The French major also has 16.7 per cent equity interest in Qatargas 2, 10 per cent equity share in Laffan Renery project, holds 20 per cent stake in QAPCO and is one of the founding partners of Dolphin energy. The strong commitment to CSR with differences according to the needs of each country in which the company is operating. In Qatar, Total has shown its commitment to the nations development as per Qatars National

Vision 2030. The energy company has entered into various collaborations with Qatar Petroleum, Qatar Foundation, Qatar University and the Higher Education Institute in order to provide support in bringing higher education to Qatar and to provide different scholarship opportunities to graduate and undergraduate Qatari students. Research is another priority for Total as it has created the rst multidivisional research centre within the oil and gas industry, in Qatar, The Total Research Center - Qatar which is located within Qatar Science Technology Park, thus fostering the knowledgebased economy. Total is also strongly supporting the growth of sports in Qatar, as part of its efforts towards social development. This being done by Total mainly through its partnerships with Qatar Racing and Equestrian Club for the sponsorship of the Qatar Prix de lArc de Triomphe and the Emiri Sword Race, and with Qatar Tennis Federation for the sponsorship of Qatar Total Open and Total Qatar National Junior Youth Tournament, as it values sports as one of the best tools to transcend cultural barriers

37

Business Logistics

JARMO KIHLSTROM, GAC QATARS INTERNATIONAL MOVING MANAGER, PROVIDES TIPS TO IDENTIFY A PROFESSIONAL MOVING COMPANY WHEN THE NEED ARISES
Professional is a highly charged word, and perhaps the victim of overuse, these days. Individuals and companies sprinkle it liberally throughout their marketing material, but are rarely questioned or called to qualify.
Its not always easy to know who is a professional and who isnt. Its usually pretty clear when we contact a medical or a dental clinic (or we hope it is) that the people well be dealing with are professional doctors or dentists with the equipment, relevant education, experience and the resources they need to do their job. But when you decide to leave Qatar for pastures new, for either personal or professional reasons, how can you be sure that the moving company you trust to move your familys treasured possessions to your new home are truly professional?

WHAT CONSTITUTES A PROFESSIONAL MOVER?

When deciding who to entrust your household goods to, its smart to take a few things into consideration:

Recommendations
Personal testimonies and recommendations are a good place to start. Have you, your company or someone you know had a good experience using a company before? And perhaps more importantly, do you know anyone who is less than happy with the service they received?

Associations and memberships

Its important to make sure the moving company you use is a part of an international association. Its just as important, however, that you know what all those lovely logos stand for.

38

little more than hype. When working with a FIDI company you are assured that you are working with a company that is a leader in their market. Their online presence should also be considered, but taken with a pinch of salt. The adage dont believe everything you read applies just as much to what you nd online to glossy sales brochures. Many websites are little more than gloried brochures with stock photos which have been purchased online, rather than showing the real activities of the company, with their logo photoshopped onto trucks, ships and even planes. This can serve as a smoke screen for a company that is really little more than a small-time local forwarder.

Jarmo Kihlstrom
International Moving Manager, GAC Qatar.

Outsourcing
Does the mover you are considering outsource the most important part of an international move - the packing itself? These days, all companies outsource some parts of their business, and many moving companies outsource the transportation of containers from one port to another to a shipping line. However, its important to know that the key service yo are paying for is provided by the professionals you have appointed. Can you imagine if your favourite restaurant outsourced the cooking!

How else can you tell if they represent something you can benet from? Theres a myriad of professional associations out there, and new ones appear every year. Many can be joined simply by paying a yearly membership, which is no guarantee of meeting professional standards. The name to look for is FIDI (the Brussels-based Fdration Internationale des Dmnageurs Internationaux www. di.org). To become a FIDI member, a company must fulll hundreds of requirements determined to be important for an international moving company. FIDI is a global alliance of moving companies founded more than 50 years ago which currently has around 600 members globally.Companies have to meet FIDIs strict criteria to join, and they are audited by an independent auditor at least once every two years to ensure that standards are being maintained. Companies are certied to two levels; FAIM and FAIMplus. Both have high standards, the FAIMplus certication being the highest. When you see that the company you are considering has been FAIM evaluated and approved, its a good indication that youre dealing with a professional .

First Impressions
How was your rst contact by phone when you called the company? Did you speak to someone who asked you the right questions about your upcoming move? Was a survey quickly arranged? Did the surveyor arrive on time and act in a professional manner that gave you the condence they knew what they were doing? Were you given a clear list of customs regulations in the country youre moving to? Did you receive advice about insuring your shipment?

Door to Door?
To make an informed decision, in most cases its best to get a door-to-door quotation, to avoid any unpleasant surprises at the other end. Unless you specically request a door-to-door quotation, some companies will only offer a quote up to the port in a bid to make their offer look cheaper, but it can cost you dearly in the end.

Quality certications
What other quality certications have the company obtained and committed to? ISO 9001 (Quality Management System), ISO 14001 (Environmental Management System), and OHSAS 18001 (Operational Healthy and Safety Management System) are some good ones. Weve all heard of people who have run into unexpected expenses, didnt have the right paperwork to even import the goods, or had a shipment blocked because it contained something that is restricted or forbidden at the other end. These are all issues that a professional international mover should take care of and provide you with full advice.

Physical presence
Pay a visit to your movers ofce. Many companies have very smooth marketing materials and brag about their global footprint, but if you see a handful of overworked staff struggling to handle a stable of subcontractors employed to deliver the services that they claim are their core competencies, its a good indication that their claims may be

So, what is a professional?

Its your call, but next time a person or company calls themselves professional, dont take their word for it check. Youll be glad you did at the end of the day

39

Business Tornado Talk

SHALE OIL: THE NEXT ENERGY REVOLUTION

Stephen Anderson
Managing Partner, PwC, Qatar.

As an economic commentator (a very much part-time role for me), Im always concerned when it seems that prices in a certain asset class are only going in one direction. Take commodities, especially gold, over the last ve years or so, house prices in the early to mid noughties or oil for the last three years.
Trends can very quickly reverse. Take house prices in Dubai. With oil we have very short memories. $145.29 per barrel on 3rd July 2008 quickly reversed as low as $33.87 per barrel by December of that year as the world became gripped by the worst nancial crisis in living memory. Prices, however, have steadily risen since with the global fundamentals of a steadily improving, albeit slowly, global economy, vast demand from high growth emerging markets and the worlds continued inability to harness alternative energy sources at scale (other than liqueed natural gas from Qatar). Oil prices above $100 per barrel and rising has pretty much become the global consensus. A recent report by PwC (for openness, my rm) has called this consensus into question: The reason, shale oil. As an example, take the North Dakota oil boom in the US. The discovery of the Bakken Shale Formation is said to be 900 billion barrels. For a comparison, more oil than the entire Arabian Gulf (747 billion barrels), according to Oil Price-Net. Until recently this oil discovery has been difcult to realise but with the rise of hydraulic fracturing (or fracking) and the increasing improvement in the related technology (and concerns over the concomitant environmental and seismic effects) ever more can be extracted. The global impact of shale oil could revolutionise the worlds energy markets over the next couple of decades, resulting in signicantly lower oil prices, higher global GDP and changing geopolitics. We developed two core oil price scenarios based on the shale oil production outlook:

Stephen Anderson is the managing partner of PricewaterhouseCoopers (PwC) in Qatar and a member of the PwC MENA Leadership Board. Stephen has led international PwC teams on initiatives with many of Qatars landmark programmes and institutions.

The rst scenario (the PwC reference case) allows for OPEC to respond to increases in shale oil production and consequent lower oil prices by limiting its own production to maintain an average price of around $100 per barrel (in real terms). This supply scenario results in OPEC losing some market share, although OPEC member states continue to increase total production in absolute terms to meet rising demand. The second scenario (the PwC low case) does not include an OPEC response, so the increased overall oil supply results in a greater impact on oil prices, which fall by 2035 to around $83 per barrel in real terms.
Shale oil has the potential to reshape the global economy, increasing energy security, independence and affordability in the long term. However, these benets need to be squared with broader environmental objectives. The relative environmental impact and ease of extraction for Qatars gas resources will likely mean its role in the global energy supply mix is secure for some time to come

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Business Offshore Impression

LNG 2012: CHANGES BEHIND STABILITY

Stephane Michel
Managing Director, Total Exploration and Production, Qatar.

Each year in February, the LNG experts of Total, the French oil and gas major that I represent in Qatar, come to Doha for an exchange on gas market trends with Qatargas and Qatar Petroleum. This years discussion was particularly exciting. I would like to share with you some of the conclusions that we came to.
The rst point about 2012 was the stagnation of LNG production after four years of continuous increase at more than 10 per cent. This time, supply decreased by 2 per cent at 239mt. Growth in Qatar, Australia and Nigeria was overcome by the decline in production in Indonesia and Malaysia. After the tremendous growth of Qatar, which has now reached its steady state at 77mt with a current market share of 32 per cent, we will have to wait until 2015-2020, when the bulk of the ongoing Australian project will go on-stream, to see again a double-digit growth. Production should indeed jump above 500mt in 2020, going from 10 per cent to 15 per cent of gas supply and catch up with some international gas exports by pipeline, remaining stable at 25 per cent. With a level of 24mt, of which 9mt in the US and 13mt in Australia, the Final Investment Decision (FID) taken this year are actually consistent with this growth forecast. Total has for example in 2012 concluded an agreement with Chennires to offtake volume from Sabine Pass in the US and has taken with his partner the FID of his Australian project Icthys. All those projects should reinforce dramatically the relative weight, currently at 35 per cent, of Asia in terms of production and lead to a decrease of the Middle East (40 per cent) and a stabilisation of the Atlantic basin (25 per cent), assuming a medium scenario on the development of US LNG export based on a rising shale gas production. On the demand side, Asia keeps on growing by an impressive 8 per cent to reach a 70 per cent marketshare. On the other side, in the UK demand fell sharply by 8mt. The situation is not bright in Continental Europe as well, where natural gas demand has dropped for a second year in a row as a result of economic slowdown in France, Italy and Spain and the development of solar and wind energy in Germany.

Prior to his designation as the Managing Director and Representative of Total Exploration and Production in Qatar, Stephane Michel served as Managing Director, Exploration and Production in Libya. He has held various titles in business development and joint ventures in the oil world across different countries.

The adjustment of supply to demand was mostly borne by LNG, whose marketshare in terms of European gas consumption declined from 20 to 15 per cent. Finally, demand in Northern America again declined in 2012 by 3mt. The Americas now account for only 8 per cent of the worldwide demand. What were the consequences of those huge supply and demand changes on the LNG prices? Well, not much actually. As you can see, 2012 was a very interesting year, with a huge shift in market patterns and sentiment, but where for sure LNG again demonstrated its exibility to balance demand and supply and Qatar again showed its ability to benet from this exibility to improve its selling price

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Business Survey

INNOVATION STRATEGY: THE QATAR DIFFERENCE

AN INNOVATION-THIRSTY COUNTRY, QATAR DOESNT REST IT IS CONSTANTLY SEEKING SOLUTIONS TO FORECASTED PROBLEMS LONG BEFORE THEY ARE FACED WITH THEM
As a country demonstrating fastpaced economic growth due to a clear strategic plan in exploiting its abundant natural resources and in building a strong local and diversied industry, and with a bright future based on the scal predictions, Qatar has also begun to be considered when it comes to innovation matters. In the last two years the country has been consistently ranking the highest in the Middle East in the Global Innovation Index, followed by the UAE. It systematically exploits its natural wealth in oil and gas with ambitious projects such as Barzan, which attract opportunities, wealth, and talent and offer ground for innovative ideas but also dont come without risk but the risk to fail is an inseparable part of the innovative mindset. In a neighbourhood where tradition is valued and is often synonymous to preserving the tried and true recipes for growth, Qatar has its sight set on new frontiers. At the same time the country is expanding its footprint globally with well-publicised projects of global interest, investments and expansions such as Qatar 2022. And while often innovation and invention are mistaken as a tautology, therefore limiting the perception of the importance of innovation to technology improvement, Qatar tackles this topic on all fronts, i.e. by investing in education and establishing the World Innovation Summit for Education. And with organizations, exchange platforms and exhibitions such as the Qatar Mobility Innovations Center, the Innovation and Technology Day, and Innovate Qatar the country is also making a prevalent mark in technology development efforts. Such a diversied approach sets a path towards innovation success. Innovation requires the right mindset and the right

Dr. Anil Khurana

Lead Partner, Middle East Practice, PwC . Dr. Anil Khurana is the lead Partner for the Middle East Practice of PwCs Management Consulting practice in the Consumer and Industrial Products & Services and Technology and Media industry verticals. He has more than 25 years experience in operations, innovation and R&D, strategy, consulting, government, and private equity, and leads the annual study on innovation in the Middle East. He was also a tenure-track Business School professor at Boston University and a lecturer at the University of Michigan.

Innovation in the Middle East has been often characterised by inertia when compared to counterparts which are classical innovators such as the US, Germany, Denmark, Japan, etc. Government is dominant, and established, bureaucracyheavy companies are common; entrepreneurship less so. There is often reluctance to try and fail but instead a preference to adhere to the status quo or follow global mainstream trends that have been proven, which of course takes the new away from innovative. But what is different in Qatar? Qatar doesnt rest. The innovationthirsty country is constantly seeking solutions to forecasted problems long before they are faced with them.

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infrastructure within an organisation, whether that is private businesses or government. It also requires a regional approach for tailor-made innovation, protected by local government policies. It needs to consider the human factor by attracting talent and establishing the right environment for ideas. It can ourish with the proper leadership, a clear vision and the accompanying strategy. At the same time, an innovation strategy dened at the top level can only trickle down the organisation in the form of innovation culture, and that postulates the proper mix of incentives, motivation, nurturing and enabling climate, feedback. And undeniably, most innovative approaches, whether in products, in service offerings or business models, are born out of need: need for improved solutions, for economic growth, for something new. Organisations in a competitive environment that have their sights set on growth, are increasing their investments in innovation. What is the next big thing? How to create the next big thing? And does it really have to be big to make an impact within an organisation? In light of the recent geopolitical developments that bring change in the way businesses are conducted and

markets are dened, and the fact that the Middle East is a large, consumption oriented market, the opportunities in business innovation are waiting to be unlocked and drive growth. Regional ambitions combined with nextgeneration technologies and a greater connectivity with the rest of the world set the frame for a transformation potential that could make a signicant impact on the role of innovative business solutions in the Middle East. Innovation is not easy anywhere, but particularly so in the Middle East, where a blend of abundant resources, ability to buy innovation, an emerging education system, and a risk-averse culture among others makes it challenging. Qatar faces these broad themes, coupled with the local specics is it easy to be successful with a startup business? How easy is it to nd the right talent for a technology-oriented start-up? Are government agencies geared to support small businesses in terms of granting land and licences? Are banks and nancing institutions able to take on acceptable risks? What if an entrepreneur goes bankrupt? And several other specics.

Innovation is continuous, evolving, adaptable. For some organisations such as Google or 3M it is their strategy, and for others such as GE or Qatar Petroleum, it is a key enabler. Innovation does not have a nal goal but is a roadmap to seeking constant improvement and new ways of solving old or new problems, which typically result in market leadership and business performance. It impacts organisations and harbours challenges alongside great opportunities. Qatar is in the early stages of establishing an innovation ecosystem that links the role of the government to educational inputs and private sector innovation and entrepreneurship, in order to harvest these opportunities to the fullest. (PwC offers a thought leadership platform on the topic of innovation featuring the latest study On the fast track: A new cycle of innovation in the Middle East, based on data gathered from 167 GCC companies in late 2012. The above write-up is based on some of the results of the survey. Join forward-thinking and innovative peers to discuss the latest in how innovation is transforming companies in the Middle East at our forum on April 7, contact Doha Ofce for details)

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Business

Entrepreunership

A FOOD GENIE THAT DELIGHTS GOURMETS

MR. WILLIAM ARANHA, MANAGING DIRECTOR OF INTEGRAL FOOD SERVICES, A MAJOR PLAYER IN THE HOSPITALITY, RETAIL FOOD SERVICES AND CONTRACT CATERING BUSINESS IN QATAR, SPEAKS TO M.V.A KUMAR ABOUT THE SUCCESSFUL STRATEGIES THAT HAVE GIVEN IFS AN EDGE IN A HIGHLY COMPETITIVE AND DEMANDING MARKET SEGMENT
A large bite of the retail food market is the dream of many entrepreneurs because food never goes out of fashion and the number of mouths to be fed can only increase. Although many may have dreamt of this, few have dared to act and even fewer have succeeded in as short a span of time as nine years. That is what makes the achievements of Integral Food Services Managing Director Mr. William Aranha incredible.
The affable food and hospitality industry professional admits that achieving such a level of success was not easy and that there were many hiccups in the initial 18 months after launch in 2004, but he had the uninching support of his two Qatari partners (Sheikh Hamad bin Jassim M. A al-Thani Chairman and Mr. Hashim alHashemi Vice Chairman of the IFS Group). His complete faith in the Qatari market has paid off till date, with brands like Royal Tandoor and Tandoor Express enjoying an 80 per cent patronage by Qatari nationals. IFSs food franchises, industrial and institutional catering have all received Mr. Aranhas touch of innovation thanks to his food and beverages (F&B) industry acumen, uncanny eye for detail and commitment to deliver quality food consistently. He admits that his company is pitted against giants in every area of its operation be it restaurant franchises, food retailing or catering, but that only encouraged him to innovate by leveraging the inherent strengths of his various food outlets to come up with unique concepts like FoodSmart that make it almost impossible for competitors to match despite their considerable market clout. A cash and carry catering model, FoodSmart serves hot meals at ofces and institutions where cooking is not permitted. Ofce locations, where FoodSmart exists include the immigration ofces, educational institutions and even places of worship. Starting in March 2004 with a catering unit in Ras Laffan, IFS-Qatar went on to open food retail franchises like Bombay Chowpatty and Southern Fried Chicken. Soon Mr. Aranha came up with Tandoor Express and Royal Tandoor. Although today IFS Group of Companies has many fully-owned subsidiaries that have nothing to do with food, Mr. Aranha admits that food has and will always be his passion and focus. In addition to Qatar, IFS has operations in the UAE and Canada, where a Tandoor Express outlet exists. In the former two it has over 50 clients with over 100,000 meals served per day, which includes worksites in far-ung areas, industrial zones, NDIA site and Qatar University campus etc. IFS-Qatar manages 15 retail food brands/franchises and over 37 retail outlets. Boasting a workforce of over 2,000, the ISO 9001:2008 certied company owns and operates over 30 restaurants and food outlets in Qatar. Among brands and concepts other than Royal Tandoor, Tandoor Express, Southern Fried Chicken, Bombay

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Mr. William Aranha at The Village

Photo Courtesy: Firoz Ahamed

Chowpatty and FoodSmart there are The Village, Coffee Time, 241 Pizza, Fruits n Flavors, Mega Wraps, Fresh n Fit, Pizza & Pasta, Janna, Kheema Paratha, Oriental Bowl and Real Gelato. Mr. Aranha explains that IFS strengths are its people and brands although its backbone is catering operations with over 60,000 meals served daily at various locations. Ultimately IFS is identied by brands like Royal Tandoor and The Village. This food retailer with his Midas touch was initially trained at Indias Oberoi Hotels and after some years in the hospitality industry in Sharjah, Bahrain and Jordan underwent advanced training in his chosen craft at Cornell University, Ithaca, New York in the US. Using his immense knowledge and experience he has created in the past successful restaurants like India Palace in UAE, a country where he also earned his industrial catering spurs during a fairly long stint with Spinneys, Abu Dhabi. The excerpts of The Executive.qas interview with Mr. William Aranha:

The mission and vision of our Board of Directors has been the guiding force for our growth strategy. This month we, IFS-Qatar are successfully completing nine years in business in the country as we had started our business in March 2004. From our humble beginnings we have grown to be a leading force in the hospitality, retail food services and contract catering business in this competitive and demanding market segment, which I believe was the result of the hard work and commitment of our team for achieving our clearly dened goals and strategy for longterm growth, evolving around our vision and mission, while understanding the market needs and taking advantage of the opportunities that were available for quality food services for different market segments in Qatar. We believe in what we do, and we do it with pride and respect.

Q:

In what way is managing food brands/franchises different from other businesses?

Q:

Within a short span Integral Food Services has managed to achieve impressive growth in a challenging sector like food, what kind of planning did it entail?

Food service is a different and very demanding business. Without a passion for food and commitment for what we do, we cannot succeed in the retail food business. In our business we do not get a second chance to win a customer as there are many options/choices available for him in the market.

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We ensure through our dedicated management team that we provide quality control, full-time on-site supervision, surprise checks and on-going training process to our team members in all our retail units, at every level, are trained, motivated and committed to deliver what we have committed to our customers quality, service and value for their money. At IFS and in all our retail units we believe that customer is our purpose and whatever we do to satisfy our customer, we do it with pride and respect.

Q:

How different is the food business in Qatar from elsewhere in the world?

Though basics of the food business are the same everywhere, the standards differ in different countries. Qatar is going through a fast transformation in every segment including in the hospitality and retail food service. I have witnessed during the last nine years remarkable improvements and changes implemented by the Food Safety authorities for restaurants and retail food operations and new initiatives and measures are implemented regularly by the authorities to improve the standards further. Fortunately, we have been ahead of this drive as we are an ISO 9001:2008 certied company and all our outlets are fully compliant of the standards now being implemented in Qatar. I feel, soon Qatar will have the best food safety standards in the world and we, at IFS are proud to participate in this process and offer world-class standards to our customers. According to me the only serious challenge for the food business in Qatar is lack of regular supply of quality food materials and availability of the raw materials, which need to be addressed sooner than later. We are trying to address this concern with our Global Food Trading Division.

Q:
Managing retail food brands and franchises is very challenging and needs our full-time attention to deliver constantly and continually the quality, service and value that we offer to achieve customer satisfaction. In order to achieve this we need to focus on innovation, technological improvements and upgrading our peoples skills through regular training, as food is the only consumable which needs to satisfy all the senses of a customer Satisfy the Eyes (presentation), Tongue (taste), Feel (quality), Mind (mood) and Body (their health and well-being) and Wallet (value for money). So it is a complex and demanding business but for us it is our passion and we enjoy it.

Since you are in a labour-intensive industry, what has been your secret formula for managing employees?

At IFS, we consider and treat every employee as a member of IFS Family and not just a number of staff to fill the vacant positions or do the job. We believe our people and our brands are our strength and we develop our people through training/cross training and career development process. We reward our staff with instant monetary rewards for their special achievements in our retail outlets, this is in addition to the monthly performance-based incentives from the business offered to all retail staff. I can proudly say that we have a policy at IFS, that no employee should remain in the same role or position for more than two years, if he/she is performing to our expected standards, if not, they should go out. (At IFS, we say it employee should Go Up or Go Out!!) These few simple measures keep our staff motivated and committed to IFS and to our core values.

Q:

What measures do you take to ensure customer satisfaction across all 37 retail outlets?

Throughout our company and across all our retail outlets we believe and practice our fundamental business values Customer is our Purpose Food is our Passion and Service is our Culture.

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Mr. William Aranha in conversation with The Executive.qa

Q:

Industrial and institutional contract catering being a price-sensitive industry, how do you ensure that the customer is satised with the price he is paying for the meal?

Q:

How do you manage the other services offered by IFS like hospitality solutions, facility management, laundry services, ofce management, skilled & unskilled manpower outsourcing services, etc.?

Contract catering business is price-sensitive and very competitive but our strength is that our management team has combined over 60 years of hands-on experience in the contract catering business in this part of the world, which enables us to offer tailor-made catering solutions for our clients and meet the demands of ethnic menu choice and taste of the our customers (clients workforce) who are the end users at work site. At the end of the day, for a construction worker, food is the only entertainment at site after a hard days work and for him, the catering company is as good as his last meal on his plate. So, it is important for us to make sure we deliver the nutritious and tasty ethnic meal of his liking, which is exactly what we do as we understand the ethnic menu requirement of each ethnic group that we cater for. For example: For a multinational/international catering company, rice and curry in the menu for everyone is the same, but for us at IFS, it is different, we understand that rice and curry for a South Indian is different than it is for a North Indian or for a Nepali or Sri Lankan or Filipino worker, because they use different kind of rice as well as the curries are cooked differently with different taste and spices. It makes a difference to our customer/end user. So, we understand this and we are able to meet their ethnic taste and demands within the given budget constraints of our clients. This is how we are different and able to achieve the customer satisfaction in a price-sensitive contract catering business, satisfying our clients and our customers at the same time.

IFS being a service-oriented and value-driven organisation, geared to provide food, catering and allied support services solutions for the oil & gas, construction industry etc., we have smartly divided the business into various segments such as Hospitality Solutions, FM & Laundry Services and Manpower Outsourcing. These businesses are driven by different executives, who have the expertise to drive those particular businesses.

Q:

Please tell us more about your new ventures in the food service and hospitality business?

Global Hospitality & Restaurant Development WLL (GHRD) Headed by Mr. Raman Khanna, who is a wellknown chef as well as restaurant developer with a proven track record in developing unique restaurant concepts in the region. Our goal and mission is to develop very high-end exclusive food concepts. Our rst project will be the French Olive Patisserie - Restaurant at Barwa Al Sadd complex, which will be launched by the third quarter of this year. Global Food Trading Company (GFT) Headed by a professional focusing on importing and distribution of food and materials for our own food service and contract catering in-house consumption and as well as for the market in Qatar

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Business Infotech

RESORT TO COURSE CORRECTION

INFORMATION TECHNOLOGY EXPERT SUFIAN DWEIK OPINES THAT IT MANAGERS IN QATAR CAN OVERCOME ENTERPRISE NETWORKING CHALLENGES THROUGH SMART INVESTMENTS
Many enterprises in Qatar are facing a huge challenge in managing their networks due to the sheer volume of new data being thrown around. How do we handle, store, and transport massive amounts of data, migrate to IPv6, and deal with user growth, all at the same time? It gets even more challenging when you consider that most networks have outdated equipment and are not well-equipped to meet these challenges.
Suan Dweik, Regional Manager, MEMA at Brocade Communications, says that the good news is that enterprises in Qatar dont need to re-invent the wheel, or in this case, the network. All it takes is a course correction. Gartner, an information technology research and advisory company, predicts EMEA IT spending in 2013 will only see a 1.4 per cent increase over that in 2012. So as IT managers are being pressured to do more, they need to maximise investments and reduce costs. This should be viewed as an opportunity to modernise the network infrastructure while making smart, forward-looking investments. Here are four opportunity areas that networking managers should be focusing on: interoperability and manageability, making the network infrastructure more agile. This is an opportunity to make the network IPv6 -- ready in stages, by working with vendors to upgrade or replace technology in a planned approach where IPv4 and IPv6 environments are supported seamlessly without putting network operations at risk. Who knows, enterprises can also take this as an opportunity to sell unused, allocated blocks of IPv4 addresses, while there is still demand, although the revenue stream is marginal with IPv4 addresses priced at about $10 per address.

Sufian Dweik
Regional Manager, MEMA, Brocade Communications

Tackling software dened networking early

The rise of software dened networking (SDN) will completely change and transform the network into a platform for innovation and will be a key component of the virtualisation process. According to the analyst rm Gartner, the primary driver for the rise in SDN adoption among enterprises is to manage operational costs. Another analyst rm, IDC, believes the global SDN market will be worth $2 billion a year in 2016, up from just $168 million today. However, SDN involves a major shift in thinking for network managers. Many enterprises are struggling with what SDN really is all about, and are waiting to see what happens as deployments begin. I recommend that enterprises

Migration to IPv6
With the depletion of IPv4 addresses, enterprises should take the lead in migrating to IPv6 technology. Most enterprises often overlook the fact that IPv6 comes with added benets that revolve around better security,

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When used with Ethernet Fabrics, SDN has the potential to unlock intelligence in the network to provide new services and powerful analytics that are key to delivering applications and services quickly and accurately as demanded by todays consumers.
commit to studying the technology and looking at how it can impact their networks sooner rather than later. When used with Ethernet Fabrics, SDN has the potential to unlock intelligence in the network to provide new services and powerful analytics that are key to delivering applications and services quickly and accurately as demanded by todays consumers. revolution with WAN Virtualisation driving consolidation and improving network performance and reliability, dramatically. WAN should be considered as a strategic piece of the cloud-computing jigsaw and network managers should prepare and enable their networks for a move towards it if they have not already done so. Enterprises must deal with this surge in trafc and spiralling costs with a converged access network, offsetting wired network capacity with improved wi- capabilities. It is essential to consider future network demands, which will come in the form of mobile devices. In conclusion it can be said that enterprises in Qatar need to focus on making investments in these four areas while always asking the question -- what are the mission critical components for your business? We are trapped in a cycle of innovation and enterprises need to work hand-inhand with vendors who understand the network and changing technology and are able to transform the network to be able to handle the demands of the business, both present and future. It may not be reinventing the wheel, but we will be making the wheel resilient to handle any terrain and weather that it may come across

Enterprise WAN get ready for a revolution

Enterprise WAN has not gone through an innovation cycle in over 15 years. Although enterprises have reduced WAN costs and improved management, much more can be done. And the urgency of this is even more pronounced in the era of the cloud. A survey on cloud adoption in the Middle East conducted by HP has revealed that over 60 per cent of respondents are already looking at some form of cloud technology. With the rise of cloud computing, the Enterprise WAN is shaping up for a

Manage mobile data costs with Enterprise WLAN deployments

With the proliferation of mobile devices and the increasing trend of bring-yourown-device (BYOD), thousands of new devices are being added into the network. The pressure is on network managers to manage mobile data costs while keeping the enterprise secure and running. According to Gartner, by 2015 80 per cent of WLAN installations will be unable to handle their loads and will require major design modications, a gure which sits below 20 per cent of current installations.

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Business Technology

SECURE BUSINESS UNDER SHADOW OF THREAT

ARMOURING OF VEHICLES AS AN INDUSTRY HAS BEEN DOING WELL AMID RISING UNREST BECAUSE GOVERNMENTS, OIL FIRMS AND RICH INDIVIDUALS ARE ALL WILLING TO SPEND MORE FOR PROTECTION, WRITES PETER APPS
In a workshop in a dusty industrial area on the outskirts of Dubai, engineers are stripping down a Toyota Land Cruiser to install armoured plating, bullet resistant glass and run-at tyres.
In the aftermath of the Arab spring revolts and with the wealth gap and social unrest rising in many parts of the world, there is no shortage of rich individuals and governments who suddenly feel they need a little extra protection. For companies such as Canadas INKAS, Britains Jankel and Germanys Transeco, it has been a lucrative decade. Even with the Iraq and Afghan wars the conicts on which the industry grew winding down, there are still deals to be done. year. But the demand for armoured sports utility vehicles and limousines visually indistinguishable from regular civilian vehicles but protected against small arms re and grenades -- is on the up. The gold standard, perhaps unsurprisingly, is set by the US President Barack Obamas Cadillac limousine dubbed the Beast by the US media and Secret Service is believed to weigh several tonnes and include its own defensive weaponry and air supply in the event of chemical attack. Several major carmakers, including MercedesBenz, BMW and Jaguar Land Rover, produce their own armoured versions of key brands. Most of the industry, however, is made up of companies who t armour to regular new or second-hand vehicles. Not only are they often considerably cheaper, but sales of vehicles built outside Western Europe and the United States can be less constrained by complex export regulations. The conversion trade is far from new. Britains Jankel which also builds armoured riot control vehicles for police and militaries has been tting armour and rebuilding limousines for heads of state and other clients since the 1980s. But the scale and breadth of demand in recent years, industry watchers say, has been entirely new. Particularly in those

Some manufacturers are also expanding into military-style riot control vehicles, another growing market where they believe they can compete with larger, established defence companies.

Newer entrant Ares Security Vehicles founded in 2010 but largely staffed by industry veterans says it has a strong and growing order book. This batch of vehicles is going to Iraq, says Marc Rouelle, a Belgian engineer now chief executive ofcer of the Dubaibased rm. And the one behind is going to Russia. We are awaiting delivery tomorrow of 30 ... destined for Libya. With spending cuts around the world, industry consultancy IHS Janes says the market for conventional military vehicles is contracting by more than four per cent a

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countries affected by the Arab spring analysts say demand from government, individuals and rms is sharply up. Its a murky market and its hard to get any exact gures, says Jon Hawkes, senior analyst for military vehicles at IHS Janes. But companies are talking about a 30-40 per cent increase in sales in the last four or ve years. The big auto manufacturers are increasingly realising there is money to be made but the main area of growth is probably at the other end of the spectrum. Prices vary, but an armoured Land Cruiser can sell for $150,000 or more, more than three times the cost of a non-armoured vehicle.

other markets. At the height of the Iraqi and Afghan wars, more than a dozen companies were operating in the United Arab Emirates alone producing what industry insiders said could be 400 vehicles a month. That demand, industry insiders say, has fallen off somewhat lately. In part, the drawdown of Western troops has meant fewer foreign personnel on the ground. At the same time, workshops have sprung up in both Iraq and Afghanistan, capable of doing their own conversions to add armour. Several companies, including Ares, have set up operations elsewhere. Jordan, with its land border with Iraq,

Ultimate lifestyle item?

At the recent IDEX arms fair in Abu Dhabi, Ares and several other companies exhibited their wares alongside more conventional defence suppliers. The bullet-riddled Land Cruiser, they say, attracted more than a little attention. Weve had a lot of interest, says John Lashmar, director of marketing and business development at Ares. Interior ministries, presidential protection details, companies and individuals in the Gulf and beyond. In the Middle East and North Africa in particular, secret police and government security forces have ramped up their resources. Saudi Arabia, one source said, had bought several dozen armoured Land Cruiser-type vehicles recently as it worries over potential trouble along its border with Yemen and minority Shia dominated areas in its oil-rich east. Qatar had bought a similar number. Some manufacturers are also expanding into military-style riot control vehicles, another growing market where they believe they can compete with larger, established defence companies. With many nations seeing an uptick in riots and unrest since the nancial crisis, such vehicles are in mounting demand. Jankels armoured police vehicles were credited with helping restore order in London after its 2011 riots. The strangest request he has had so far, Rouelle said, was from somebody looking to armour a Porsche sports car. He declined, preferring to concentrate on the rms existing strengths. Other rms, however, will offer just that service. One US-rm, Lasco Group, says it will armour a Ferrari for $100,000 plus the original cost of the vehicle. Its armoured aluminium, however, would only be proof against handguns. Sometimes it can be seen as a lifestyle item, says Hawkes at IHS. These buyers are much less concerned about exactly how bulletproof a vehicle might be

Tested against grenades, bullets

In the entrance of its Dubai workshop, Ares proudly displays one of its most heavily tested vehicles a Land Cruiser subjected to heavy gunre on a test range in Germany. Given enough time, the company says it can convert almost any vehicle but the Toyota Land Cruiser has emerged as far and away the favourite. The Dubai plant now produces two such vehicles a day, CEO Rouelle says, still primarily for shipment to Iraq and Afghanistan but increasingly also to other buyers elsewhere. The Middle East emerged as a major centre of the industry because of its proximity to those two war zones and

is a particular favourite. For Rouelle, however, Dubai, still offers an appealing base. As well as an easily tapped migrant workforce, it charges little tax and is well located for the other growing markets of the Middle East, Africa and Asia. The UAE is an attractive base for our main operations, he says. European engineering, tested and certied in Germany, made in Dubai. Multinational companies, particularly oil rms, are big buyers, nding such vehicles a useful tool to bring down rising insurance premiums. Rich people in emerging economies hope they will offer protection from kidnapping and street violence. But the real money, those in the industry say, still lies with large government contracts.

Courtesy: Reuters

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Business Travel

TRANQUIL TRIP ON WATER

FOR THOSE INTERESTED IN GOING FLY-FISHING IN WINTER, NORTHERN MICHIGAN RIVER OFFERS A ZEN-LIKE EXPERIENCE, WRITES ELLEN CREAGER

Winter y-shing has other challenges. If its sunny and in the 30s, conditions are glorious. Great waterproof waders keep anglers dry. Gourmet lunches and hot coffee keep them warm.

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Guide Tom Menas shes in his waders in the frigid Jordan River on a winter afternoon.

Anglers know something that tourists dont. You can y-sh all year round, even in winter.
Beyond skiing, snowshoeing, snowmobiling, skating and winter zip-lining, the latest tourist attraction in northern Michigan is getting in a oat boat and having A River Runs Through It experience in the dead of winter. People say, What? They think the river freezes, says Ethan Winchester of Boyne Outtters. He is head yshing guide at Boyne Mountain, which for the rst time is offering winter y-shing as an activity for its guests. Rivers dont freeze up like a lake. The trout dont leave. They become somewhat dormant and slow down, but theyre still in the river. This time of year, steelhead and trout are theoretically there for the catching -- but they are elusive. Winter y-shing has other challenges. If its sunny and in the 30s, conditions are glorious. Great waterproof waders keep anglers dry. Gourmet lunches and hot coffee keep them warm. But a lot of times when you come out here and its 10 or 20 degrees, the rods get covered up with ice, and the reels freeze, says Tom Menas, another guide. It adds a different element to it.

Which may be the understatement of the year. On this January day, we start at Chestonia Bridge, a few miles south of East Jordan. We are lucky. It is above freezing. And it is sunny. Winchester backs up the Jeep and its trailer to a snowy embankment and slides the boat downhill like a sledge, where it gathers speed and splashes into the water of the Jordan River. Soon, we are oating in the Hyde-McKenzie- style drift boat, with paddles like a river raft. Winchester guides the boat past low-hanging branches, eddies, swirls, minor rapids, sharp limbs and fallen trees. We dodge hollers and shadows, dark water and open areas. We sh at holes the anglers know, murky spots called Two Logs, Brown Trout Alley, Lawyers Lounge, Sucker Hole. We sh. We sh. No bites yet. The day is all crystal ice and melting snow, at times completely silent except for the sharp cracking snap of our drift lines. A merganser duck honks and ies overhead. The burbling water calls out its winter song. My feet feel warm in their waders with boots, waterproof as a tarp on a roof. I sip hot coffee. I cast my line, again and again. The guides show me how to ick my wrist, cross over, then repeat until it becomes automatic, even beautiful.

Its not all roughing it as visitors interested in winter y-shing can stay at the Boyne Mountain Grand Lodge in Boyne Falls.

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Winchester and Menas are ardent y-shermen. They have caught plenty of trout in winter. But not every day. Perhaps not this day. The sh keep you humble, says Winchester, 25. He used to be a yshing guide in remote Alaska. He grew up in Charlevoix and knows this area like the back of his hand. Still, he doesnt always get lucky. The Boyne guides prefer to take clients on the Jordan and Sturgeon rivers in winter, adding others in summer. The Jordan is a favourite. Rarely above 52 degrees even in July, it is clear, fastmoving, and the banks are quiet and forested. There are a lot of proverbs about y-shing, and one says that each river has its own soul and character, Winchester says. This river has just about everything to put you at ease. Today, the three-mile route takes us six hours. We stop many times to sh from the boat and wade in the water. We stop longer on a riverbank to eat lunch and sh some more. Winchester grills steaks, asparagus and new potatoes and heats brownies on a portable grill. The sun shines. The river shimmers. Menas and I walk slowly downstream through the frigid January water, casting our lines. You dont want to fall into the river this time of year. We are so careful, especially walking back upstream against the tugging icy current. My boots feel like they weigh 1,000 pounds apiece. But they are stable. Its the oddest feeling, to walk through water up to ones knees in the middle of January and not be cold or wet. You can do winter y-shing all across the state. But mostly its conned to hard-core anglers who just need that x, Winchester says. For newcomers or people who want the help of a guide, a more structured programme is denitely the way to go -- and the big ski resorts like Boyne are happy to oblige. Resorts across America are adding other unusual activities to keep skiers busy and attract new guests. Water parks, spas, zip lines, yoga, ice skating, cross-country skiing -- and now

The Pelletier Restaurant Fish Boil is one of the institutions of Door County. Tourists can nd a sh boil with whitesh, red potatoes and more at many restaurants on the Peninsula.

Winter y-shing on the Jordan River in northern Michigan. Guides Ethan Winchester (front) and Tom Menas of Boyne Outtters cater to y-shing fans even in the depths of January.

winter y- shing -- beckon to winter lovers who used to show up just for the downhill skiing. And I do recommend winter y-shing, as odd as it sounds. The winter river, with its bowing cedars, yellowish and curving, is something to see. Newly fallen trunks and limbs lie this way and that (Winchester and Menas bring a chainsaw in case they encounter an obstacle). Snow hugs the banks. A midwinter sun looks as chilly as a circle of lemon sorbet in the sky. Ice clings to bare twigs like glass. You can breathe out here. Deeply. I do have one weird question for my guides. Have they ever caught the same sh twice? Yes. If a sh has a scar or special marking, they may recognise it. Also, anglers know these rivers, know where the sh are, at least sort of. Because its catch and release, sh often return to the same general area where anglers caught them last time.

We know their address, Menas says. Still. The entire venture to me seems delicate and chancy, the rod so light that it seems it would be torn from your hand should a trout have a notion to eat lunch. Most new anglers who try y-shing can be intimidated, partly because of the 1992 lm A River Runs Through It, which made the y rod seem like Brad Pitts magic wand. Even today, guides see some people with A River Runs Through It Syndrome, which is a compulsive need to do a gure-8 twirling of the line, like youre doing a ribbon dance, scoffs Winchester, icking his wrist and sending the line straight out into the fast-moving current. Boyne Mountain is going into winter y-shing full throttle, plus preparing for spring. Theres a stocked trout pond near the ski runs. There are shing poles available for guests. They teach y-shing and y tying.

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IF YOU GO:
Winter y-shing is offered by many shing guides in Michigan, but the big ski resort Boyne Mountain has taken it up a notch, offering it for the rst time this year to guests through Boyne Outtters on the property. Several packages are available, including the classic described in this article, the Traditional Float: Float down the river and sh from the boat and in the water. Instruction, equipment, waders and lunch included in the full-day tour; $375 for two people. Also offered is a half-day tour for $275. Getting there: Boyne Mountain is in Boyne Falls, northwest of Gaylord and about a four-hour drive from Detroit.

WINTER FUN:
For a different spin on a snowy vacation, here are some things to look for:

AIR BAGS:
These massive, inatable air bags are placed at the bottom of jumps to allow skiers and boarders to try ips and spins. Nail the landing on your feet, and you ride off down the hill. Fail, and you have a soft landing.

BUMPER CARS ON ICE:

Fishing ies with shiny bits are designed to entice the trout even in the depths of January. Boyne Outtters leads January yshing trips for the diehards and the curious.

After we leave the river and return to the resort, Winchester asks if I want to catch a trout in the pond. But it seems a violation of the Zen of y-shing, contrary to the acceptance of the shs wishes on this day not to be caught. Anyway, I kind of get a kick out of picturing the lazy steelhead huddled along depressions in the winter river. I picture them watching plankton drift by, the steelhead equivalent of watching Here Comes Honey Boo Boo on TLC. They feel a boat passing, hear voices, see that nice juicy bug or clump of eggs dangling above, but ... nah. Theyll doze on this January day until they feel spring coming for real. Crazy humans, they murmur as the boat passes, then all becomes silent again

These are turning up at skating rinks from coast to coast. The batteryoperated cars are large rubber tubes with moulded seats that can hold one adult or an adult and a small child. Controlled by two joysticks, they are easy to steer or spin as they bump along on wheels with tiny cleats.

ICE CASTLES:
These massive ice castles are formed by thousands and thousands of icicles. A series of pathways takes visitors through ice columns, tunnels, caverns and archways. Introduced last year in Silverthorne, Colorado, the castles were being built this winter in Steamboat Springs, Colorado, and at the Mall of America in Bloomington, Minnesota.

Courtesy: McClatchy-Tribune News Service

SNOWBIKES:
Bicycles that ride on skis have been around for decades, but now they have the blessing of some ski resorts, which rent the bikes and offer instruction. The bikes can be taken on the chairlifts to access a variety of terrain.

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Business Motoring

The GSs upgraded engine and paddle-shift six-speed transmission have been carried into the latest model unaltered. Active rear-steering is an exceptional technical bird.

Lexus is on a mission, to shed its image of a brand associated with only cars that are luxurious and high tech, but tedious to drive. Their mid-sized GS 350 luxury sedan is a Lexus reborn.
My test car, a 2013 Lexus GS 350 was silver-coloured with contrasting black leather interiors. I found myself staring at the cars ferocious spindle grille snout prior to the test session. Irrespective of what other things I have to tell about this car, I would like to highlight the fact that its recalibrated 3.5-litre engine is capable of offering improved mileage. The suspension has been totally renovated and so has the available vigorous rear steering and exible shock management systems, with an overpowering bold look for the entire vehicle. In appearance this brand new GS 350

is easily identiable by its distinctive front bumper, unique mesh grille inserts and rear lower valance. There is also a rear lip spoiler on the trunk deck lid. With the fourth-generation 2013 GS 350, Lexus does appear to break away from their luxury-overload mould. The 2013s body and chassis are all-new. The front sheet metal is indisputably more aggressive-looking with huge air intakes that widen towards the pavement. There are menacing HID headlights with LED running lights, and LFA inspired curves. In the words of Lexus, the new GS 350 was designed to engage driving enthusiasts with factory engineering and the ability to take performance to an entirely new level. Lexus GS 350 is a powertrain that makes a deep impression on the

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GAME CHANGING

LUXURY SEDAN

WITH THE FOURTH GENERATION 2013 GS 350, LEXUS APPEARS TO BREAK AWAY FROM THEIR LUXURY-OVERLOAD MOULD ALTHOUGH THE VEHICLE IS REFINED AND STYLISH TO THE CORE, WRITES SAMI SAID ALI

GS 350
road. The GS handling game has clearly been elevated. The primary handling and appearance enhancements of Lexus GS 350 appear to be consistent. The GSs upgraded engine and paddle-shift six-speed transmission have been carried into the latest model unaltered. Active rear-steering is an exceptional technical bird. At lower speeds this vehicle has the capability of turning its rear wheels to assist the front ones to negotiate sharp bends and corners. At higher speeds there is only slight mirroring of the front wheel positions to ensure increased stability. Both the front and rear tracks have been broadened; the rear suspension is an all-new multilink affair; larger bushings are employed upfront; and the entire suspension is aluminium. Like all drivers, before pressing the Start/Stop button I familiarised myself with the four different driving congurations offered by the new Lexus Drive Mode Selector, which is located just behind its traditional consolemounted transmission lever. While seated in driving position, I found this Lexus responsively shrinking, thus allowing me to be comfortable. I just loved GS 350s gorgeous interior, metalwork, particularly the volume and tune knobs. They were extremely solid and nely made. From the classy analogue clock to the soft leather lining the seats, centre console, and doors to the near-perfect sport steering wheel and massive and clear multimedia display, this Lexus oozes modern sophistication. In short it is rened and stylish to the core.

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A peek into the inside of this new GS revealed that everything inside was top-notch and clean. A giant console is the centre of attraction and action. Its extraordinary screen width of 12 inches enables a view that takes in multiple things at once. Characteristically it shows a navigation map on a huge slice, and either sound system or climate control info on a smaller one. Not having to ip between screens as in the case of smaller units of conventional size is a nice aspect. The resolution on the screen was crystal clear and extremely beautiful to look at. The Lexus remote touch central controller still manages most functions, but it now has a more convenient push-to-enter design. The craftsmen of the GS 350 have incorporated electronically controlled performance settings of the screen to be accessed through the puck-sized round dial. I found the controller way too over-reactive, jumping around the screen far quicker than I wanted, or alighting on a function that I didnt select. Time and familiarity might help, but I found myself reaching too often way across the centre stack for the standard tuning knob as the preferred alternative to go from station to station on satellite radio. Once familiarity is achieved, I think I will be able to browse the contents with perfect ease in this cocoon of silence or while being entertained by the cars seriously strong audio system. The Lexus luxury was equipped with just about every amenity I could imagine, head-up display, blind spot

monitoring, night vision, window shades all around, and comfortable, heated-and-cooled, power adjustable front seats. A gold star should go to the very supportive seats, which provide a mesmerising 12 means of adjustments. Those climbing onto the backseat would nd plenty of headroom and leg room, thanks to the redesigned front seats. Also the trunk is roomier, due to a more compact rear suspension. Even rear seat occupants are coddled with ipdown armrest controls for heated seats, climate, and audio. The GS 350 seemed a great powertrain, particularly when the mode knob is turned to Sport or Sport+. That setting allows the transmission to hold gears longer and tightens up the throttle response. Gauges look 3-D with lighting that changes from Eco Blue to Angry Red in Sport Mode. The GS 350 turns were sharp and accurate, and weight transfer, whether lateral or longitudinal, was neutral and composed. Is there a dark side? No. But maybe some shades of grey. While the GS 350 variable-rate steering enables knife-like handling sharpness, its light-effort weighting seems mismatched with the seriousness and scale. This Lexus proved to be most entertaining, rewarding, and condence-inspiring as I zipped up, down, and along the roads of Doha. But, the most important difference about the new GS 350 was the genuine feel that it gives of a midsized luxury sedan, which in itself is game changing

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Business Stock review

BOURSE SEESAWS TO CLOSE 251.37 POINTS LOWER

OVERALL FOUR WEEKS SHOWED MORE LOSSES THAN GAINS WITH PROFIT-BOOKING BY INVESTORS BEING ONE OF THE MAIN REASONS
During the four-week period under review (February 10 - March 7) the Qatar Exchange index rose on nine days and declined on the other nine. It declined by 251.37 points during the review period after having dropped 196.19 points or 2.25 per cent during the month of February alone.
On February 10, the 20-stock Qatar Exchange Index rose 0.1 per cent to 8,770.72 points from its previous close of 8,757.59 points. The following day too, before closing for the National Sport Day celebrations, the bourse rose 0.06 per cent to touch 8,776 points. An across-the-board buying, especially in the telecom and banking equities, extended the bullish run in the Qatar Exchange for the third day on February 13. Domestic institutions were mainly instrumental in lifting the 20-stock QE Index (based on price data) by 0.55 per cent to 8,824 points. More than 69 per cent of the stocks extended gains to investors with major movers being QNB, Qatar Islamic Bank, Commercialbank, Ahlibank Qatar, Gulf International Services (GIS), Mazaya Qatar, Qatar Telecom and Nakilat; even as Industries Qatar (IQ), Qatari Investors Group and United Development Company bucked the trend. However, foreign institutions turned net sellers to the tune of 8.9 per cent or QR37.86mn. A lower 24.45

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per cent of them bought equities compared to 30.08 per cent on Monday whereas a much higher 33.35 per cent ofoaded against 21.46 per cent. On the last day of that week, selling pressure, particularly in the industrials sector, dragged QE. Domestic institutions continued to be net sellers but with lesser intensity as the 20-stock QE Index fell 0.35 per cent to 8,792 points. During that week QE Index rose 0.4 per cent. Strong buying, especially in consumer goods, transport, telecom and banking stocks, led the QE to maintain bullish momentum. The bourse opened the week February 17 to February 21) weak mainly dragged by telecom and transport equities. Although local retail investors were imparting buying momentum, the 20-stock QE Index (based on price data) fell 0.13 per cent for the second day to 8,781.11 points.

Prot-booking was rather strong in large cap stocks in the market, which was however up 5.05 per cent yearto-date (YTD). On February 18, buying interests from foreign institutions lifted the Qatar Exchange. The buying momentum was strong particularly in the telecom, consumer goods and realty sectors as the 20-stock QE Index (based on price data) rose 0.15 per cent to 8,794.67 points. Small, micro and large cap equities witnessed some brisk buying in the market, which is up 5.21 per cent year-to-date (YTD). Major gainers included Industries Qatar, United Development Company (UDC), Mazaya Qatar, Qatar Telecom, Qatar Islamic Bank and QNB. Commercialbank, Doha Bank, Qatari Investors Group and Gulf International Services (GIS) bucked the trend. The following day Qatar Exchange (QE) weakened despite strong buying support from local institutions.

Foreign institutions prot-booking dragged the QE Index (based on price data) by 0.17 per cent to 8,779.90 points. Selling pressure was more pronounced in consumer goods, realty and banking sectors in the market, which is up 5.04 per cent year-to-date (YTD). Telecom, industrials, consumer goods and transport sectors were among the best performers as they outperformed the index by returning 11.53 per cent, 7.49 per cent, 6.24 per cent and 5.78 per cent gains YTD. Market capitalisation was up 0.01 per cent, or QR4mn to QR476.44bn, mainly on a 0.07 per cent gain in mid cap equities, while small, large and micro caps fell 0.41 per cent, 0.40 per cent and 0.35 per cent respectively. The Qatar Exchange witnessed a bullish spell mainly led by the buying support from foreign institutions. Domestic institutions were also seen exerting buying inuence,

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albeit with lower intensity, as the 20-stock QE Index (based on price data) gained 0.24 per cent to 8,801.31 points. Transport and realty stocks outperformed the index. Major gainers included Qatar Islamic Bank, Qatari Investors Group, United Development Company (UDC), Barwa, Vodafone Qatar and Nakilat, even as Masraf Al Rayan and Gulf International Services bucked the trend. Market capitalisation expanded 0.25 per cent, or more than QR1bn, to QR477.63bn. Of the 42 stocks, 20 advanced, while 16 declined, four were unchanged and two were not traded. Foreign institutions turned net buyers to the tune of 2.09 per cent or QR6.31mn. A much higher 35.9 per cent of them bought equities compared to 22.12 per cent, although a marginally higher 33.81 per cent ofoaded against 33.54 per cent. On the last day of that week prot booking, particularly in telecom and realty sectors, dragged the bourse. Local retail investors increased net selling saw the index declining 0.76 per cent to 8,734.56 points. QE also started the next week (February 24 to February 28) on a low note. Substantial prot-booking, especially by foreign institutions, dragged the bourse by 0.47 per cent to 8,693.21 points. However, strong buying support was witnessed from domestic institutions. Also the following day, local retail investors prot-booking extended the bearish spell on the Qatar Exchange. Selling pressure was strong in insurance, realty, telecom and banking stocks as the 20-stock QE Index (based on price data) fell 0.46 per cent to 8,653.07 points. Small, micro and large cap equities were the inuential drag in the market, which is, however, up 3.52 per cent year-to-date (YTD). Of the 42 stocks, only 10 advanced, while 25 declined, four were

unchanged and three were not traded. The following day on February 26, QE extended its losing streak despite buying support from domestic institutions. Selling pressure was strong among local retail investors, leading the QE Index to shed 0.93 per cent to drop to 8,572.37 points. About 55 per cent of the stocks were in the red with major shakers being Doha Bank, QNB, Qatar Islamic Bank, Al Meera, Industries Qatar, Gulf International Services (GIS), Barwa, United Development Company and Vodafone Qatar, even as Nakilat bucked the trend. Even on the fourth day of that week, the bear run continued as domestic institutions sought to book prots. Despite buying pressure from local retail investors, the index fell 0.94 per cent to 8491.56 points. Market capitalisation eroded 0.63 per cent or about QR3bn to QR464.29bn. On the last day of February the index appreciated to close at 8,528.58 points. However, the bourse declined 2.25 per cent during the entire month that is down by 196.19 points. Market capitalisation was down 1.49 per cent at QR466bn compared to QR475bn the previous month. The following week after a bank holiday Qatar Exchange started functioning from its new premises at Al Dana Tower at West Bay. It edged down mainly on heavy prot-booking by local retail investors. Domestic institutions strong buying support notwithstanding, the 20-stock QE Index (based on price data) fell 0.17 per cent to 8,513.93 points. The telecom segment primarily dragged the market, which is, however, up 1.85 per cent yearto-date (YTD). Consumer goods, telecom, industrials, transport and banking sectors outperformed the index by gaining 7.41 per cent, 6.74 per cent, 6.74 per cent, 6.38 per cent and 3.67 per cent YTD respectively, while insurance and real estate were in the negative turf.

Major shakers included Qatar Telecom, Commercialbank (Cb), International Islamic and Nakilat; even as Gulf International Services (GIS), QNB and Qatar Islamic Bank bucked the trend. Prot-booking by local retail investors extended the bearish spell on the Qatar Exchange to the second day of that week. Although local retail investors were seen exerting strong buying pressure, the 20-stock QE Index (based on price data) fell 0.39 per cent to 8,480.35 points. The transport, telecom and consumer goods segments dragged the market, which is up 1.45 per cent year-to-date (YTD). Major shakers included Industries Qatar, Mazaya Qatar, Vodafone Qatar, Nakilat, Qatar Islamic Bank and Mawashi. Gulf International Services (GIS) and Barwa bucked the trend. Market capitalisation eroded 0.33 per cent, or about QR2bn, to QR464.32bn. Strong buying interests from foreign institutions on March 6 lifted the Qatar Exchange after the two-day bearish spell. Domestic institutions strong protbooking notwithstanding, the 20-stock QE Index (based on price data) gained 0.18 per cent to 8,495.25 points. The realty and banking stocks came under the buying spotlight in the market, which is up 1.63 per cent year-to-date (YTD). On March 7, the last day of the review period, modest buying by local retail investors and lower selling from domestic institutions helped Qatar Exchange to sustain the bullish momentum of the previous day. The index gained 0.13 per cent to reach 8,506.22 points. However, overall QE closed the week in the red (down by 0.26 per cent) despite strong buying interest from domestic institutions

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